APOLLO UPS THE ANTE IN TABCORP BIDDING BATTLE

US private equity firm Apollo Global Management has made a AU$3.5B offer for Tabcorp’s Wagering & Media arm. 

Apollo’s bid for the Wagering & Media arm of the Australian group matches last week’s improved AU$3.5B bid from British gambling giant Entain. If Entain’s bid is successful, the operator will become the biggest player in the country overnight.

However, Apollo has upped the ante by also tabling an alternative offer of AU$4B, if Tabcorp throws in its Gaming Services division too. 

Tabcorp says it will be assessing the proposals in its previously announced strategic review – which is tasked with evaluating all structural and ownership options. An alternative to selling the wagering and media arm could be to separate it from the lotteries arm, and list it as a separate company on the ASX. 

US media group, Fox Corporation, is also known to be interested in Tabcorp’s Wagering & Media arm. Indeed, the corporation recently registered the FOXBet trademark in Australia, clearly signalling its intentions to establish a presence.