UK sports betting and iGaming group Entain PLC has upped the ante in its pursuit of Tabcorp’s Wagering & Media arm with an improved AU$3.5 billion (US$2.7 billion) offer.
The Australian racing giant revealed details of the revised bid on Tuesday, which is significantly higher than the original AU$3 billion (US$2.3 billion) bid it received from Entain in early February.
Tabcorp had rejected Entain’s initial proposal, as well as a similar offer from another party, in late March claiming they “do not adequately value Tabcorp’s Wagering & Media business.”
It also revealed plans to undertake a strategic review to assess and evaluate all structural and ownership options in order to maximize the value of Tabcorp’s businesses for the benefit of shareholders.
Those plans haven’t deterred Entain, with Tabcorp confirming it has now received a revised unsolicited, non-binding and indicative proposal to acquire the Wagering & Media business for an enterprise value of AU$3.5 billion.
“The revised proposal continues to be subject to numerous conditions including due diligence, arranging financing, receipt of all relevant regulatory approvals and obtaining various third party approvals and consents,” Tabcorp said.
“The Tabcorp Board has not yet formed a view on the merits of the revised proposal and will assess it in the context of the previously announced strategic review.”
Should Entain succeed this time around it would immediately become the biggest player in the lucrative Australian horse racing and sports betting market where Tabcorp holds 43.7% market share. Entain currently holds about 4% via its local sportsbook Ladbrokes.
As previously reported by IAG, United States media giant Fox Corporation is said to be another interested suitor in Tabcorp’s Wagering & Media business as it looks to expand its own online betting portfolio.