Multi-Billion Dollar Merger for TABCORP & Tatts Group on the Cards
According to a press report by the online news website in Australia, Business Insider, the long anticipated multi-billion dollar merger of the bookmaker giant Tabcorp Holdings Limited and its rival Tatts Group Limited is likely to take place sometime late in November this year.
The revelation reportedly came after the Australian Competition Tribunal approved the deal a few months back in June. Although Tabcorp Holdings Limited, a leading bookmaker based out of Melbourne is pretty enthusiastic about the prospect of the merger, all eyes are on Tatts Group Limited that is yet to endorse the arrangement at a special meeting that is likely to be organized on the 18th of October.
The twin sports betting companies had reportedly given a thumbs-up for the merger almost a year ago in October 2016 and agreed to create a multi-billion dollar worth of diversified gambling entertainment company that will be worth somewhere north of $9 billion and boast of a market capitalization worth a whopping $6.9 billion.
As per a report released by the Business Insider, the Australian Competition and Consumer Commission had earlier in July prompted the Australian Federal Court to carry out a judicial review of the merger deal authorized by the Australian Competition Tribunal. Following the report, the Tabcorp Holdings Limited reiterated the fact that it is absolutely confident of the earlier sanction still staying in effect.
The Tabcorp Holdings Limited Chairperson, Paula Dwyer, released a statement in the media saying that with all the required regulatory approvals in place during the pre-implementation phase, the Tabcorp Holdings Limited is highly enthusiastic about carrying out the said merger by November 2017 and work with Tatts Group Limited towards the creation of a stronger and more diversified gambling firm. She further added that working in collaboration with Tatts Group Limited will not only allow them to make greater investments but also ensure a higher level of innovation throughout the various departments including the R&D of top notch digital experiences and products.
According to the report released by Business Insider, the Tabcorp-Tatts merger will inevitably create a powerful and diverse new firm with its offerings ranging from gaming to lottery, sports betting and keno services. It is also being speculated that following the merger, while the Tabcorp Holdings Limited shareholders will receive 42% in the new entity, the shareholders in Tatts Group will be awarded somewhere around 58% of the shares.
