Entain has confirmed a non-binding indicative offer to acquire the wagering and media business of Tabcorp Holdings Limited.
The operator released a statement addressing rumors regarding sales related to the Australian firm and explained discussions are at an early stage.
Entain also added that “any transaction would be in-line with Entain’s current M&A strategy of expanding across regulated international markets.”
Tabcorp’s wagering & media division makes up close to 40% of Tabcorp’s overall revenue. The division is also an established presence in Australia’s horse racing and sports betting market, holding 43% market share.
Gambling Insider previously reported Tabcorp’s confirmation that the company has been approached by interested parties, though it was stated any potential talks would remain confidential and any offers will likely change in accordance with proposal conditions.
Both Tabcorp and Entain maintain the talks are not final and that there’s no certainty any transaction will take place.
After Entain confirmed its interest, Tabcorp shares jumped by 9%, increasing the company’s value to AUD9.9bn ($7.5bn).
Entain, meanwhile, recently confirmed Jette Nygaard-Andersen as its new CEO, making it the first listed UK gambling operator to employ a female CEO.
The operator has also been in talks over potential M&A opportunities with Enlabs, while it recently rejected a bid in the other direction, as MGM Resorts International attempted to acquire Entain.