‘The Entain AU3.5 billion dollar offer if accepted will see the firm acquire an additional 44% Australian sports betting market share!’ (Image by Patty Jansen from Pixabay)
Early this morning the revised Entain AU3.5 Billion offer for Tabcorp was confirmed amounting to what is US$2.7 billion to acquire the ‘Wagering & Media’ arm of the business.
British-based iGaming giant Entain, formerly GVC Holdings, initially made an AU$3 billion offer for Australian-owned Tabcorp in February this year. At the time, Tabcorp’s ASX/TAH shares were hovering around the AU$4.00 mark. Yet, as is common when an already successful corporation opens negotiates, shares tend to gain momentum post big. In the case of Tabcorp, its shares skyrocketed 25% nearing AU$5.00.
Entain probably expected the share price hike and has now come back with a bid 17% higher than the previous offer. Although the percentages do not match, the 17% increased bid is likely because Tabcorp share increases were partly due to the original offer from the UK firm. Should interest wain or Tabcorp decide not to take Entain up its offer, share prices will probably drop off 10%. As such, the additional half a billion Australian dollars appear to be a fair offer to reflect current stock market movements.
On the Entain online news page, confirmation of the bid has been made official by the PLC while Tabcorp also confirms that it received the bid which is subject to a lengthy list of conditions!