Apollo Raises Stakes in Tabcorp Takeover Battle with $2.7 Billion Bid

The investment behemoth, Apollo Global Management, has increased its bid to purchase the betting and broadcasting arm of Australian gaming enterprise, Tabcorp, presenting a transaction valued at A$3.5 billion (US$2.7 billion).

This amended proposition aligns with a previous offer submitted by Entain, a UK-based gaming conglomerate, in April 2021. Entain had originally proposed A$3 billion for the struggling firm in February before elevating their bid.

Nevertheless, Apollo has also presented an alternate proposal to acquire both Tabcorp’s betting and broadcasting business, in addition to its gaming services unit, for a combined sum of A$4 billion.

Tabcorp’s board of directors has indicated that they have not yet determined whether to approve or decline the revised propositions. The propositions are contingent upon several factors, including securing funding, finalizing due diligence, obtaining all essential regulatory clearances, and receiving the necessary approvals and consents from various stakeholders.

Tabcorp further noted that it will assess the proposition within the framework of its previously disclosed strategic evaluation. This evaluation aims to examine all structural and ownership possibilities to optimize the value of its enterprises for the advantage of its shareholders.

Substantial interest in Tabcorp initiated the strategic evaluation, with board members deliberating either divesting the struggling betting and broadcasting segment or separating it from the lottery division and listing it independently on the Australian Securities Exchange.

There have been indications that Lachlan Murdoch has also shown interest in the business as his Fox Corporation pursues expansion in Australia.