Speculation is mounting that Entain could come back with a higher offer for Tabcorp’s wagering and media unit as its share price soars on the London Stock Exchange.
Shares in companies related to gaming, wagering and lotteries are reaching fever pitch right now due to their defensive nature amid the pandemic and following a period of government stimulus to prop up the workforce affected by Covid-19-related lockdowns.
Only in recent weeks, the online Australian bookmaker BlueBet saw tremendous demand for its initial public offering, where it was 11 times oversubscribed, demonstrating the soaring investor demand.
Tabcorp’s directors have been weighing a number of offers for parts of its business and a board meeting is scheduled for around now to determine the future of the company.
On the table are cash offers from Entain and Apollo Global Management, along with a $4bn cash and scrip bid from ASX-listed BetMakers.
Entain, advised by Macquarie Capital and Morgan Stanley, is seen as the favourite to win with its $3.5bn cash offer for the wagering and media unit and some suspect it could soon sweeten this bid to $4bn to cement its position.
Another option is demerging the unit.
Private equity giant Apollo Global Management, working with Jefferies, has offered $4bn for Tabcorp’s wagering, media and gaming services arms, or $3.5bn for just the wagering and media divisions.
Tabcorp’s shares last traded at $5.17 with its market value at $11.53bn.
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