Tabcorp Holdings has offloaded its 11.6 per cent stake in ASX-listed lotteries operator Jumbo Interactive.
The sale through a block trade agreement with UBS will see Tabcorp gross $98m from the sale at $13.52 a share.
The proceeds will be used to pay down existing drawn bank debt facilities. Tabcorp will record a profit after tax on the sale of approximately $69m which is expected to be reported as a significant item as part of the 1H21 result.
Tabcorp’s managing director and CEO, David Attenborough, said: “Following the recent extension of our long-standing commercial distribution relationship with Jumbo for a 10 year term to August 2030, there is no longer a strategic rationale for Tabcorp’s shareholding in Jumbo”.
“As a result, we have decided to monetise this investment, with the resulting capital to be used to further strengthen the balance sheet and support the move towards our recently revised target gearing range”.
Tabcorp last traded at $3.38, down 1c, while Jump closed down 57c at $14.40.
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