Ladbrokes owner Entain hikes offer for Australian bookmaker Tabcorp’s wagering arm
The owner of Ladbrokes has hiked its offer for bookmaker Tabcorp’s wagering arm.
Entain, which also owns Coral and Partypoker, was batted away in February when it tabled £1.7billion for the Australian division – but the FTSE 100 firm is hoping the fresh £1.9billion offer will seal a deal.
The move comes amid a wave of consolidation in the sector. Entain itself was subject to a £8.1billion takeover bid in January by Las Vegas casino giant MGM Resorts, which it fought off.
Ladbrokes owner Entain, was batted away in February when it tabled £1.7bn for Tabcorp’s wagering arm – but the FTSE 100 firm is hoping the fresh £1.9bn offer will seal a deal
Tabcorp’s board said it was still considering Entain’s offer. Entain said: ‘The revised proposal is compelling in terms of the value it represents for Tabcorp shareholders in cash, and certainty of deliverability.
‘The proposed transaction would be in line with Entain’s M&A strategy, and presents an opportunity to acquire an attractive business, which when combined with Entain’s existing Australian business, would create a leading, integrated multi-channel and multi-brand wagering company.’
Entain may face competition from other bidders, including private equity giant Apollo, which bid earlier this year.
A sale could face a probe from Australian competition authorities. In recent months Entain has snapped up Swedish bookie Enlabs and Portugal’s Bet.pt.
Last week, shares in US giant Caesars Entertainment soared after it completed the £2.9billion acquisition of William Hill.
Size has become more important because of the scramble for market share in the US, amid a growing arms race to win customers.