According to a report from the Australian edition of the Business Insider online news portal, the revelation from Melbourne-based Tabcorp Holdings Limited follows June’s approval of the deal by the Australian Competition Tribunal although the arrangement must still be endorsed by Tatts Group Limited shareholders at a special meeting on October 18.
The sportsbetting pair initially agreed the merger in October of 2016 while the combined diversified gambling entertainment firm is reportedly set to be worth around $9 billion and have a market capitalization of approximately $6.9 billion.
Business Insider reported that July saw the Australian Competition and Consumer Commission watchdog ask the Federal Court of Australia to conduct a judicial review into the decision from the Australian Competition Tribunal although Tabcorp Holdings Limited subsequently stated that it remains confident the previous authorization will be upheld.
“With substantially all pre-implementation regulatory approvals now in place, we look forward to continuing to work with Tatts [Group Limited] to successfully complete the transaction and are expecting implementation to take place in November of 2017,” read a statement from Paula Dwyer, Chairperson for Tabcorp Holdings Limited. “Together we will be well placed to pursue more investment and innovation across all our businesses including best-in-class digital products and experiences.”
Business Insider reported that the merger will create a new entity offering a wide range of sportsbetting, lottery, keno and gaming services. Tabcorp Holdings Limited purportedly explained that the arrangement is to additionally deliver at least $104.4 million in annual synergies and business improvements with the combined entity expecting to record annual revenues of about $4.1 billion.
The transaction is reportedly moreover due to see shareholders of Tabcorp Holdings Limited end up with 42% of the new enterprise while their compatriots for Brisbane-based Tatts Group Limited are to hold approximately 58%.