Tabcorp Holdings Limited has announced it will undertake a strategic review of its businesses, having decided that the proposals received for its Wagering & Media business have undervalued the asset.
Tabcorp has previously announced it has received a number of unsolicited approaches and proposals to acquire its Wagering & Media arm, all of which valued the business at around AU$3bn (US$2.3bn).
But having carefully considered such proposals, the Tabcorp board formed the view that they do not adequately value the Wagering & Media business. The company has instead announced it will assess and evaluate all structural ownership options, in a bid to maximise the value of its businesses for the benefit of shareholders.
“These options could include a potential sale of the Wagering & Media business to a third party or a potential demerger, which could be implemented via a separation of the Wagering & Media business or the Lotteries & Keno business,” a statement from Tabcorp read.
Tabcorp chairman Steven Gregg commented: “The assessment of Tabcorp’s strategic and ownership options includes, but is not limited to, a demerger or sale of one or more of our businesses. Our clear objective is to ensure that we fully maximise the value of Tabcorp’s gambling entertainment businesses for our shareholders.”
Tabcorp also announced that the search for a new managing director and CEO will be put on hold until the outcome of the review, with David Attenborough to continue in the role in the interim.