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- BetMakers Technology (BET) has submitted a non-binding, indicative proposal to acquire Tabcorp Holdings’ (TAH) wagering and media business for $4 billion
- BetMakers says the acquisition would bring together two complementary businesses to create a competitive global wagering and technology platform
- Under the proposal, Tabcorp would receive $1 billion in cash through debt funding and $3 billion in BetMakers shares
- The company says there is no certainty the proposal will result in any transaction, with the agreement subject to due diligence
- BetMakers last traded at $1.60, while Tabcorp traded at $5.06
BetMakers Technology (BET) has submitted a non-binding, indicative proposal to acquire Tabcorp Holdings’ (TAH) wagering and media business for $4 billion.
BetMakers says the acquisition and proposal represents compelling value for shareholders, as it brings together two complementary businesses to create a competitive global wagering and technology platform.
The combined businesses would be able to take advantage of BetMakers’ technology and product innovation to compete more aggressively in an increasingly digital-driven market, while allowing the companies to grow their global network and market access.
The acquisition would see the retention of an Australian ownership structure and continued commitment to support the Australian racing industry as mutual growth initiatives are pursued.
Under the proposal, Tabcorp would receive $1 billion in cash through debt funding and $3 billion in BET shares.
Shares will be priced at a 15 per cent premium to the traded price of BET prior to signing. Based on the 10-day volume weighted average price to May 26, the proposal would provide shareholders with an approximate 65 per cent interest in the combined BetMakers and Tabcorp business, plus $1 billion in cash to Tabcorp.
“The potential acquisition of Tabcorp’s Wagering and Media business represents an exciting opportunity for BetMakers to deliver transformational growth and realise the value of these new assets in line with this strategy,” said BetMakers Chief Executive Officer, Todd Buckingham.
“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.”
The company says there is no certainty the proposal will result in any transaction, with the agreement subject to due diligence.
BetMakers last traded at $1.60, while Tabcorp traded at $5.06 on May 27.
