Tabcorp Investors Express Disappointment Regarding Merger Vote
Some of the Tabcorp investors have expressed their disappointment regarding the decision of the Chairman of Tabcorp, Paula Dwyer. This is because the Chairman Paula Dwyer has decided to reject the vote on the deal that the company is having with Tatts Group. This merger deal would result in an 11.3 billion Australian dollar company. This company is expected to control almost ninety percent of the business in the Australian market.
The Request for a Vote
The ASA (Australian Shareholders Association) has made a request from the Tabcorp governance. This request was to give the shareholders of the company the ability to vote on this merger. According to a statement by Paula Dwyer, according to the ASX Listing Rules and corporations law for Tabcorp, it is not a requirement for the company to give the shareholders a vote.
She also added that the shareholders should rest assured that this transaction was considered by the board and it would have a great impact on the company and its shareholders. In addition, she stated that board is absolutely unanimous when it comes to their view of this move, stating that it represents a really compelling value for the shareholders of Tabcorp.
Tabcorp Executive Pay Raise
The pay packet of CEO David Attenborough witnessed an increase from 2.7 million Australian dollars to 3.1 million after a majority vote at the AGM of the company. On the other hand, 22.7 percent voted against this increase. This was only 2.3 percent away from the needed 25 percent to suspend this pay rise which would have represented a big strike against the company’s board. It was not only the voters, as other corporate governance advisers as well as the ASA were against this planned raise in the executive pay at the company.
The main reason behind the vote against the pay rise was the 50 percent decline in profits in 2016. That was beside the significant legal fees that were paid from the court cases that Tabcorp was a part of. All of this shows that 2016 was a pretty difficult year on the Aussie operator, especially after the anti money laundering charges. These charges were made by the AUSTRAC as a result of their failure to reports over 200 suspicious money transactions. The case is expected to take place next year, in a Federal Court. The company is also facing an investigation by the Aussie Federal Police. This is concerning an alleged bribery that took place in 20098 in Cambodia.
This alleged bribery has led to the resignation of its previous managing director Elmer Funke Kuppe. On the other hand, the merger might help elevate the business of Tabcorp, as they form a big Aussie powerhouse that can pretty much dominate the Aussie gambling market.