Fri. Nov 18th, 2022

Tabcorps wagering business makes about $400 million a year and analysts reckon it is worth more than $2.5 billion.
It comes after Tabcorp said it had received several approaches for its gaming and wagering unit.
The bidders are understood to include Ladbrokes owner Entain, which is listed in the UK and owns a handful of gaming and wagering companies, as well as a private equity-led offer.
Wylie is one of a handful of Tabcorp investors who has been calling for change at the company. Tanarra has a bunch of funds, including a long-term value fund that buys stakes in the likes of Tabcorp and aims to help its portfolio companies create value.
Tanarra has stepped up its bidding in recent months. The firm recently missed out on Lions dairy and drinks unit, which includes Australias only national cold chain distribution network and sells milk-based drinks, yoghurts and juices. Tanarra was working on a Lion dairy and drinks offer with industry funds including Hostplus and Sunsuper.
It comes as private equity investors have run the rule on Tabcorp in the past 12 months. The companys shares are trading at below where they were this time last year, and it needed to raise capital mid last year to shore up its balance sheet.
Tabcorps wagering unit has a lot of characteristics that private equity suitors traditionally look for. Its big, has a dominant market position and defensive cash flows, but is under attack from corporate bookmakers and has proved challenging for Tabcorp in recent years.
The more valuable part of the company is its lotteries unit.
Firms understood to take a close look at Tabcorp in recent months include Blackstone and Morgan Stanley Infrastructure Partners. The latter was involved in a private consortium bid for Tatts Group in 2017. Tatts was acquired by Tabcorp.