ENTAIN MAKES AUS $3 BILLION CASH OFFER FOR AUSTRALIA’S TAB

British gambling giant Entain has made an all-cash $3B AUS (approx. €1.92B euro) offer for Australia-based Tabcorp Holdings’ TAB racing and sports betting unit. 

As previously reported, Entain is known to have been in talks with Tabcorp for the past few weeks. However, despite Entain saying its offer represents the “market valuation” of the assets, the Australian Financial Review has reported it will most likely be rejected, and that Tabcorp is looking for a minimum of $3.5B. 

Entain has also stated that, if it does acquire the TAB units, it intends to merge them with its existing Australian online portfolio, which currently consists of Neds, Ladbrokes, and Bookmaker AUS. Given the fact that TAB currently has a number of exclusive wagering rights across Australia, it could instantly make Entain the Australian online betting market leader, knocking Flutter’s Sportsbet brand off the top spot. 

Despite Entain getting its offer in first, it may have some competition from other gambling operators and private equity funds, and there is still uncertainty around whether Tabcorp will actually be willing to split its assets two years after its $11B merger with rival Tatts Group – a move which has proved disappointing for investors so far. 

Tabcorp Holdings is expected to make a decision about whether TAB will be sold or not as early as tomorrow, Wednesday 17 February, when it publishes its 2020/2021 interim results. 

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