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Tabcorp Holdings (ASX:TAH) to demerge lotteries and keno business

Consumer Discretionary
ASX:TAH      MCAP $1.188B
05 July 2021 10:20 (AEDT)
Tabcorp (ASX:TAH) - CEO, David Attenborough

Source: Sydney Morning Herald

Tabcorp Holdings (TAH) has unveiled plans to demerge its lotteries and keno business from its wagering, media and gaming services business.

The decision follows the completion of a strategic review, amid an influx of bids for parts of its business, and will see the company pursue the creation of two standalone, ASX-listed companies.

Lotteries &KenoCo comprises a lottery operator with licences to operate in all Australian jurisdictions except for Western Australia, as well as the licensee of Keno products to venues in New South Wales, Victoria, Queensland, South Australia and the Australian Capital Territory.

The designated Chair of Lotteries & KenoCo is Tabcorp Chairman Steven Gregg, and the CEO designate is Tabcorp’s Managing Director – Lotteries and Keno, Sue van der Merwe.

Wagering & GamingCo comprises wagering operator TAB, racing and sports broadcaster Sky, businesses in the US and Europe, and gaming services provider MAX.

Bruce Akhurstm, who has worked as a Non-Executive Director of Tabcorp since July 2017, has been named the designated Chair and Adam Rytenskild, the incumbent Managing Director – Wagering and Media, as the CEO designate.

Mr Gregg and the current board will oversee the implementation of the demerger. David Attenborough will stay on as Managing Director and CEO until it is completed.

The company is aiming to complete the demerger by June 2022, subject to all necessary consents and approvals, and expects the process to incur a one-off cost of around $225 million to $275 million

Tabcorp also noted it will continue to engage with Betmakers (BET) — which has made a bid for its wagering and media business — in relation to “commercial opportunities in international markets”.

Shares closed at $1.05 on Friday, July 2, 2021.

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