Lofty share price sees Tabcorp move to quash takeover rumours

Tabcorp’s share price has risen more than 16% amid reports that two private equity firms are eyeing an ambitious move for the Australian wagering giant. The operator’s share price hit A$4.10 today after closing at A$3.54, lifting the group’s market cap to A$9.1bn. According to The Australian, two undisclosed firms are planning on launching separate bids, each targeting different segments of the business. One of the proposals entails purchasing Tabcorp in its entirety, while the other is solely interested in the group’s wagering division, which is valued at around $3bn. Both proposals would reportedly include the return of Australian gambling royalty Matthew Tripp to the industry. Former Sportsbet boss Tripp was the CEO of BetEasy from 2018 until May of this year and has allegedly been approached to take charge of the TAB wagering arm in the aftermath of any potential takeover. However, Tabcorp has moved to pour cold water on the rumours, informing the Australian Securities Exchange that it is yet to receive any formal bid. The statement read: “[Tabcorp] is not aware of, and has not received, any proposal in respect of the company or its businesses.” In addition, there are major concerns regarding the probity approval process for any foreign investment over whether or not state governments would be comfortable with private equity firms being placed in charge of newly acquired lottery licences. Tabcorp CEO David Attenborough will step down from his role in H1 2021.