Apollo Raises Bid for Tabcorp’s Betting and Media Arm to $2.7 Billion
A private equity group, Apollo Global Management, has increased its bid to purchase the betting and media segment of Australian gaming firm Tabcorp, presenting a transaction valued at A$3.5 billion (roughly US$2.7 billion).
This adjusted proposal equals an offer submitted by Entain, a UK-based gambling powerhouse, in April 2021. Entain had originally proposed A$3 billion in February for the struggling enterprise before enhancing its bid.
Nevertheless, Apollo has also presented an alternate proposition to acquire Tabcorp’s betting and media business, alongside its gaming services unit, for a combined A$4 billion.
Tabcorp’s board of directors has indicated that no definitive choice has been reached concerning the modified proposal. The offer is contingent upon several factors, including funding, due diligence, regulatory clearances, and securing approval from various external parties.
Tabcorp further stated that it will assess the proposition in tandem with its previously disclosed strategic evaluation. This assessment aims to investigate all structural and ownership possibilities to optimize shareholder returns.
The strategic evaluation was commenced due to expressions of interest from multiple entities. The board has been deliberating whether to divest the underperforming betting and media segment or separate it from the lottery operations and list it independently on the Australian Securities Exchange.
Lachlan Murdoch, via his Fox Corporation, has also purportedly shown interest in the business as he pursues expansion avenues in Australia.