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- Gambling and entertainment company Tabcorp (TAH) has decided to conduct a strategic review of its business structure
- The decision was prompted by several unsolicited proposals for transactions regarding the company’s wagering and media business
- Tabcorp will consider options such as selling the business to a third party, as well as a potential demerger of the business
- The company has also resumed the review of its gaming services business and postponed its search for a new CEO
- Tabcorp closed 2.7 per cent in the red to trade at $4.69 per share
Gambling and entertainment company Tabcorp (TAH) has decided to conduct a strategic review of its business structure.
The company’s decision was reportedly prompted after Tabcorp received several unsolicited transaction proposals. The proposed transactions would involve the company’s wagering and media business, which the proposals valued at approximately $3 billion.
Tabcorp’s board of directors has considered the proposals presented to the company, and come to the conclusion that they did not adequately reflect the value of the business. In order to maximise the value of its various businesses, the company’s board will now undertake and oversee an assessment of structural and ownership options for the future.
Tabcorp will consider options such as selling the wagering and media business to a third party, as well as the possibility of a potential demerger of the business. A demerger would be implemented through the separation of the wagering and media business, or of the company’s lotteries and keno business.
Tabcorp’s Chairman, Steven Gregg, commented on the company’s strategic review.
“The assessment of Tabcorp’s strategic and ownership options includes, but is not limited to, a demerger or sale of one or more of our businesses,” he said.
“Our clear objective is to ensure that we fully maximise the value of Tabcorp’s gambling entertainment businesses for our shareholders,” he added.
As a part of the review process, Tabcorp has also resumed the strategic review of its gaming services business.
Further, the company has put the search for Tabcorp’s next Managing Director and CEO on hold, until the strategic review is completed. David Attenborough will continue in these roles on an interim basis, until the strategic review produces an outcome.
Tabcorp closed 2.7 per cent in the red to trade at $4.69 per share.
