Entain frustrated by Tabcorp's new business plan

Entain has publicly expressed its disappointment with Tabcorp’s decision to pursue the division of its Lotteries and Keno business.

Tabcorp announced that it will pursue a spin-off strategy with BetMakers, which will result in the rejection of all offers for its betting business and will create two autonomous companies listed on the ASX; ‘Lotteries and KenoCo’ and ‘Betting and GamingCo’.

Entain was one of the companies that declared an interest in Tabcorp’s Betting and Media arm, as well as the Apollo Global Management group. Both organizations made bids worth $2.7 billion, with Entain’s initial bid scrapped by the Australian operator.

Australian technology company BetMakers has also offered to buy the struggling company, but the recent announcement ends any ongoing negotiations. Instead, the two groups will work together to discuss international business opportunities.

“Entain is disappointed with the decision of Tabcorp’s board as we believe our cash offer would have provided superior results for shareholders, customers, employees and the industry in general,” says an official statement from Entain.

“Price discipline is essential in building the meaningful shareholder value that our global growth strategy will deliver to all of our stakeholders.”

Entain also noted that its business in Australia, comprising the Ladbrokes, Neds, Betstar and Bookmaker brands, continues to grow after registering expressive brands in 2020.

In addition, the company added that it is confident “to make further progress as it offers innovative and highly engaging products to its customers, as well as supporting the health of the entire Australian running industry”.

About Entain

Entain plc, formerly known as GVC Holdings, is an international sports betting and gaming company. Listed on the London Stock Exchange, the group has relevant brands such as bwin, Coral, Ladbrokes, PartyPoker and Sportingbet.