Entain in talks to buy Australia’s largest sports betting firm
In response to media reports, Tabcorp also confirmed in a statement that it had received “a number of unsolicited approaches and proposals” regarding its wagering arm.
“The proposals were expressed to be confidential, indicative, non-binding and subject to numerous conditions including due diligence, financing and various regulatory approvals,” the Melbourne-based group said.
Tabcorp, which also has a large lotteries arm, is currently valued at just under A$10bn (£5.6bn). Its Wagering & Media arm made A$2.1bn in its last full year to June 2020, mostly from horse racing bets, with underlying profit (EBIT) of A$175mln.
Entain, which was until recently known as GVC Holdings, has been pursuing a strategy of expanding across regulated international markets, such as its recently agreed deal for Baltics-focused gambling group Enlabs.
As such, the company said a takeover of Tabcorp “would present an opportunity to acquire an attractive business which, if combined with Entain’s existing Australian business, would create a leading, integrated multi-channel and multi-brand wagering company”.