- BetMakers Technology Group Ltd (ASX:BET) announced that it has submitted a proposal to acquire Tabcorp Holdings Ltd’s (ASX:TAH) assets.
- The non-binding, indicative acquisition proposal has an enterprise value of AU$4 billion.
- The acquisition would combine the technological capabilities and global platform of BetMakers with the scale and content assets of Tabcorp’s wagering and media.
BetMakers Technology Group Ltd (ASX:BET) on Friday announced that it has submitted a proposal to acquire Tabcorp Holdings Ltd’s (ASX:TAH) assets. The technology firm has put forward a non-binding, indicative proposal to acquire Tabcorp’s wagering and media business for an enterprise value of AU$4 billion.
The acquisition is expected to combine the technological capabilities and global platform of BetMakers with the scale and content assets of Tabcorp’s wagering and media. For Tabcorp, the combination would help to boost its wagering and media’s consumer proposition in Australia and improve monetisation of its content globally.
Source: ©Miflippo | Megapixl.com
As per the proposal, Tabcorp would receive AU$1 billion in cash, which BetMakers anticipated funding through debt financing, and A$3 billion in its shares. The number of shares to be issued would be fixed at the time a transaction is agreed and priced at a 15% premium to the traded price of BetMakers prior to signing.
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What company says
Commenting on the development, BetMakers Chief Executive Officer, Todd Buckingham said that the potential acquisition of Tabcorp’s wagering and media business represented an opportunity for BetMakers to deliver a transformational growth. The combined entity would be a compelling investment proposition as one of the most broadly deployed global racing networks in the market, Buckingham also said.
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On Tuesday, 27 May 2021, the shares closed at AU$1.60, up 5.96%, or 0.090 points as against the previous closing on Monday, 26 May 2021. BetMakers is in competition with Treasury Wine Estates Ltd (ASX:TWE) and Metcash Ltd (ASX:MTS, Woolworths Group Ltd (ASX:WOW), Coles Group Ltd (ASX:COL), among others in the consumer sector.