Betmakers Technology Group (Betmakers) has submitted a $4bn bid to acquire Tabcorp’s Wagering and Media business, which includes its in-venue betting and Sky Racing channels.

The bid is made up of $1bn in cash plus $3bn in Betmakers shares and CEO Todd Buckingham said the acquisition would help bring global growth to both businesses.

“Over the past few years, Betmakers has been focused on growing an international footprint to position itself as a world-leading data and technology products and services provider that can deliver commercial benefits for the two critical pillars of the racing world: racing bodies and wagering operators.

“The potential acquisition of Tabcorp’s Wagering and Media business represents an exciting opportunity for Betmakers to deliver transformational growth and realised the value of these new assets in line with this strategy.

“TAB and Sky Racing have a strong wagering brand and we believe that Betmakers is uniquely positioned for an opportunity to grow and further enhance the business both in Australia and globally.”

Betmakers’ Strategic Adviser Matt Tripp added: “I am excited by the potential opportunity to reinvigorate the Tabcorp Wagering and Media business. There is significant potential for the business to grow in partnership with Betmakers and I hope to get the opportunity to support the Australian racing industry which relies on the success and growth of TAB.

“Aside from the value that this offer is anticipated to unlock for shareholders in both companies, this is an incredibly exciting opportunity for the Tabcorp Wagering and Media business to maximise its commercial potential on a global scale.”

In a statement to the ASX Tabcorp acknowledged that it had received the unsolicited and non-binding bid and the Board had not yet made any decisions on its next move.

The statement said: “The proposal is subject to numerous conditions including due diligence, arranging financing, receipt of all relevant regulatory approvals and obtaining third party approvals and consents.

“The Tabcorp Board has not yet formed a view on the merits of the proposal and will assess it in the context of the previously announced strategic review.”

That Tabcorp strategic review is assessing and evaluating all structural and ownership options to maximise the value of Tabcorp’s businesses for the benefit of its shareholders. The company said these options may include the potential sale of the Wagering and Media business to a third party.

Andy Young

Andy joined Intermedia as Editor of The Shout in 2015, writing news on a daily basis and also writing features for National Liquor News. Now Managing Editor of both The Shout and Bars and Clubs.

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