BetMakers has made a $3.09bn offer to acquire Tabcorp’s Wagering and Media business. The proposal includes $1bn in cash and up to $3bn in BetMakers shares, giving Tabcorp investors a 65% stake in BetMakers. This bid follows earlier offers from Entain and Apollo.
BetMakers plans to fund the cash component through debt financing.
Matt Tripp, Strategic Adviser, says: “There is significant potential for the business to grow in partnership with BetMakers, and I hope to get the opportunity to support the Australian racing industry which relies on the success and growth of TAB.”
The proposal is seen by BetMakers as a strategic move to unlock the value of Tabcorp’s Wagering and Media division. It offers distinct advantages over a cash sale by providing shareholders with more flexibility and choice and presents a better alternative to a demerger by leveraging BetMakers’ technology and its established global network.
Todd Buckingham, BetMakers CEO, adds: “Building on BetMakers’ success to date, the combined entity would be a compelling investment proposition as one of the most broadly deployed global racing networks in the market.
“We are uniquely placed to pursue commercial opportunities globally and, in particular, in the US.”
If accepted, this acquisition would significantly expand BetMakers’ global footprint and enhance its business portfolio, also maximizing Tabcorp’s commercial potential on a global scale, making it an attractive opportunity for investors and stakeholders.
