Tabcorp Said to Offer Premium for $4 Billion Betting Firm Tattsby
Wagering firms discuss new proposal after 2015 deal stalled
Agreed transaction may be announced as soon as Wednesday
Tabcorp Holdings Ltd. plans to offer at least a 10 percent premium to Tatts Group Ltd. investors, as it makes another attempt at a combination of the two Australian betting companies, people with knowledge of the matter said.
An agreed deal may be announced as soon as Wednesday in Australia, according to the people, who asked not to be identified as the information is private. Brisbane-based Tatts Group has a market capitalization of A$5.3 billion ($4 billion), while Tabcorp is valued at A$4.1 billion.
The two wagering companies, which have engaged in merger discussions several times, ended talks in November on a merger of equals with no premium. A combination would help fend off competition from overseas bookmakers like Ladbrokes Plc and Bet365 Group Ltd. by creating a company that offers betting on horse racing, greyhound racing and sports matches in nearly every Australian state and territory.
Shares of Tatts and Tabcorp were halted from trading Tuesday, pending an announcement about a potential change of control deal, according to separate exchange filings. Tabcorp, based in Melbourne, hasn’t finalized details of the offer, and the talks could still fall apart, the people said.
A spokesman for Tabcorp declined to comment, while a spokeswoman for Tatts didn’t immediately respond to a voice mail seeking comment.
Tatts offers wagering on horse racing and sports matches in Queensland, South Australia and Tasmania states and also operates a lotteries business. Tabcorp holds licenses for similar activities in Victoria and New South Wales states, according to its website. Both companies also offer online wagering services.