BetMakers tables AUS $4bn buyout of TAB to tempt shareholders to form a new Aussie giant.  

BetMakers has become the latest suitor to show its hand in the pursuit to acquire Tabcorp Holdings TAB wagering and media unit. 

The ASX-listed racing and wagering systems provider submitted its deal proposal, which values Tabcorp wagering assets at AUS $4 billion (€2.5bn).

Wooing Tabcorp shareholders, BetMakers stated that it had proposed the most compelling acquisition for TAB, whose customer proposition would be transformed for the benefit of punters and to improve the funding of Australian racing.

Under the proposal, Tabcorp would receive AUS $1 billion in cash for TAB, with BetMakers reserving a further AUS $3 billion share placement – guaranteed with a 15% premium on BetMakers closing share price prior to finalising the deal.

BetMakers underlined that its proposal was weighted to favour Tabcorp investors, who would benefit from a +65% interest, in the combined ASX business of BetMakers merging with TAB wagering units.

“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.”

BetMakers underscored that its combination with TAB merged two highly complementary Australian businesses, which will be transformed to create a new competitive business in the global sports betting sector.

The bid was personally backed by Australian betting magnet, Matt Tripp, who serves as BetMakers new strategic M&A advisor.

“I am excited by the potential opportunity to reinvigorate Tabcorp’s wagering and media business,” Tripp disclosed. “There is significant potential to grow in partnership with BetMakers supporting Australian racing which relies on the success and growth of the TAB.

“Aside from the value that this offer is anticipated to unlock for shareholders of both companies, this is an incredible opportunity for Tabcorp Wagering unit to maximise its commercial potential on a global scale.”

BetMakers joins FTSE100 Entain Plc and US private equity fund Apollo Global as a suitor chasing the TAB. Last month Entain and Apollo revised their bid offers proposing a straight AUS $3.5 billion cash buyout of the unit to Tabcorp shareholders.

Meanwhile, Tabcorp’s board has underscored that no decision will be made on any unit sales until new chairman Steven Gregg completes his strategic review of the business, in the interest of securing long-term value for investors

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