Tabcorp and Tatts Group Merger News Update
In a move that has strategic purposes that has a lot to do with the planned merger between Tabcorp and the Aussie gaming operator Tatts Group, Tabcorp has purchased a ten percent stake in Tatts Group. Purchasing that stake in its Brisbane based rival is surely a step to pave the way to the expected merger between the two companies, which is going to be worth 8.18 Billion dollars.
Reports Refer to the Stake Acquisition
As per reports from Australia, Tabcorp Holding Ltd. agreed on an equity swap that is going to give it the voting right for more than 137 million shares in Tatts Group. This deal is not going to change the proposed post merger structure. According to a statement by Tabcorp Holding Ltd., this transaction is aiming to ease the proposed merger between the two companies. It also aims to provide the shareholders with better outcomes, from a financial perspective. The statement continues to state that the merger between Tatts Group and Tabcorp Holdings is going to deliver great value to the shareholders of the two companies. It is also going to bring great benefits to other shareholders such as the government, the customers, the businesses partners as well as the business industry.
According to reports, this acquisition provides Tabcorp with voting rights over the shares of Tatts Group. This has made it more than likely that the merger is going to get the approval of the shareholders. This is also going to make it quite hard for any other party to make a stake. This is why this strategic move is a pre emptive move to prevent any shortcomings.
Ladbrokes Coral To Launch a Bit for Tabcorp Holdings
In an unexpected move in the Aussie market, Ladbrokes the British gaming and sportsbetting operator is reportedly launching a bid for Tabcorp, its Aussie rival. This deal could cost Ladbrokes more than 2.48 billion. Tabcorp has a reported capitalization in the market that is worth about 3 billion dollars. It operates some of the big brands in the Aussie market. This includes Tab.com and Sky Racing. It also has set footing in the UK market with its partnership with the well-accredited The Sun newspaper. Any offers from Ladbrokes might threaten Tabcorp’s own merger with Tatts Group.
This makes the whole situation between Tabcorp and Tatts group quite interesting. This is because there are two deals on the table right now. This is why many reports indicate that this can be quite a difficult bite for Coral Group [Ladbrokes], because of the size of the deal. This is true, especially after the fact that the company has just closed its deal to purchase the UK gaming company, the Gala Coral Company.