Tabcorp raises $371m through institutional entitlement offer

Australian racing and wagering company Tabcorp has completed the institutional component of its AU$600 million entitlement offer, with the 97% take-up raising AU$371 million.

Tabcorp’s latest financing transaction was revealed following last week’s publication of the ASX gambling group’s 2019/2020 fiscal results, recording operating losses AUS $870 million (€520m), primarily attributed to ‘asset impairment charges’ restructuring the firm’s wagering units.

The funds generated, according to Tabcorp’s outgoing Chair Paula Dwyer, will result in a ‘stronger balance sheet and greater financial flexibility’ as the company continues to overcome the challenges faced during the COVID-19 pandemic.

Dwyer said: “We thank our institutional shareholders for their participation in the entitlement offer which attracted approximately 97% take-up.

“Those institutional shareholders who did not take-up their entitlements will receive $0.45 for each right not taken up as a result of the shortfall bookbuild, which cleared at a price above TERP.

“The renounceable entitlement offer structure chosen by the Board also provides Tabcorp’s retail shareholders with the opportunity to participate in the retail entitlement offer on a pro rata basis, or potentially realise some value for their entitlements if they don’t take-up their rights.

“Following the completion of the entitlement offer Tabcorp is expected to have a stronger balance sheet and greater financial flexibility in the current uncertain times.”

Tabcorp is expected to launch the retail component of its entitlement offer, which is predicted to raise a further AU$229 million. It will offer retail stakeholders the same opportunity to acquire one new Tabcorp ordinary share for every existing share held at AU$3.25 per share.

Check Also

Liverpool and Manchester United in discussions to join new European Premier League

Liverpool and Manchester United are taking part in negotiations to join a new European Super …

William Hill delivers on group-wide recovery as US takeover priorities loom

William Hill has stated that it is tracking ‘solid progress across all divisions’, as the …

Tier 3 restrictions in Greater Manchester close the region’s betting shops

After several days of negotiations between local leaders and Downing Street, Greater Manchester has become …