The private investment group Apollo Global Management has improved its bid to purchase the betting and broadcasting branch of Australian gaming company Tabcorp, suggesting a transaction valued at A$3.5 billion (US$2.7 billion).
This equals an offer presented by Entain in April 2021. The UK-based gaming behemoth increased its proposal after initially offering A$3 billion for the struggling enterprise in February.
Nevertheless, Apollo has also submitted an alternate proposition to acquire both Tabcorp’s betting and broadcasting operation, in addition to its gaming services unit, for a combined sum of A$4 billion.
Tabcorp’s directors stated they had not yet reached a conclusion on the amended proposition. The proposal is also contingent upon several factors, including obtaining funding, finalizing due diligence, receiving all required regulatory clearances, and securing necessary approvals and consents from various stakeholders.
Tabcorp further indicated it would evaluate the proposition within the framework of its previously disclosed strategic assessment, which aims to examine all structural and ownership alternatives to optimize the value of its operations for the benefit of its investors.
The surge of interest in Tabcorp prompted the corporation to initiate the strategic review, with board members deliberating whether to divest the struggling betting and broadcasting arm or separate it from the lottery division and list it independently on the Australian Securities Exchange.
Lachlan Murdoch has also allegedly shown interest in the business, as his Fox Corporation seeks expansion within Australia.
