Entain has confirmed that it has made an offer to acquire Tabcorp Holdings Limited’s betting and media business. In an official note, the operator explained that the dealings with the Australian company are at an early stage.
The operator also added that “any transaction would be in line with Entain’s current M&A strategy of expanding into regulated international markets”.
Tabcorp’s betting and media division represents about 40% of the company’s overall revenue. The brand also has an established presence in the Australian horse racing and sports betting market, holding 43% of the segment.
This is not the first time that this division of the company has been sought by other interested companies. In previous opportunities, Tabcorp has stated that any negotiations must take place confidentially.
Both Tabcorp and Entain say the negotiations are not final and that there is no certainty that any transaction will take place. After Entain confirmed its interest, Tabcorp’s shares jumped 9%, increasing the company’s value to $ 7.5 billion.
Recalling that Entain announced Jette Nygaard-Andersen as its new CEO, becoming the first UK listed gaming operator to have a woman in this leadership role. In addition, the company is in negotiations with Enlabs.
Entain rejects recent proposal to acquire MGM
The company recently rejected an offer to buy from MGM Resorts International. The proposal was priced at $ 18.91 per share, valuing the operator at around $ 11 billion.
At the time, Entain did not appreciate the prices involved in the deal and said publicly that the offer “underestimated the company and its customers”. MGM, for its part, formally stated that it would not make a new proposal “after careful consideration”.
