Apollo Global Management, an equity investment firm, has improved its bid to purchase the betting and broadcasting arm of Tabcorp, an Australian gaming corporation. The adjusted offer stands at A$3.5 billion, roughly US$2.7 billion, equaling a prior proposition made by Entain in April 2021. Entain, a UK-based gambling powerhouse, had originally proposed A$3 billion for the struggling entity in February before raising its bid.
Notably, Apollo has also presented an alternate proposition to acquire both Tabcorp’s betting and broadcasting operation, in addition to its gaming services unit, for a combined A$4 billion.
The Tabcorp board has indicated they haven’t yet formed an opinion on the revised proposition, which is contingent upon several factors. These encompass securing funding, finalizing due diligence, obtaining all required regulatory green lights, 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 stakeholders.
The strategic evaluation was initiated due to interest from numerous parties, with board members deliberating whether to divest the struggling betting and broadcasting section or separate it from the lottery division and list it independently on the Australian Securities Exchange.
Lachlan Murdoch has also reportedly shown interest in the enterprise as his Fox Corporation pursues expansion within the nation.
