Supreme Court ratifies Tabcorp demerger but racing head threatens legal action
Long-running demerger saga close to the end but faces claims that it could be a “financial disaster” for the racing industry
The demerger of Tabcorp’s lottery and keno business from its wagering and media division moved a step closer after the Supreme Court of New South Wales gave permission for the company to host a scheme meeting on 12 May.
This follows the publishing of a demerger booklet released by Tabcorp on 30 March detailing in full its estimated A$11bn (£6.3m) plan.
The meeting will allow shareholders to vote on the demerger which was first announced in July 2021.
The decision came following two failed bids of A$3bn and A$4bn from both Entain and Apollo for its wagering division.
It comes just two weeks after Tabcorp revealed the hiring of two new CIOs to head up tech for the proposed separate entities.
However, following the announcement, Racing NSW threatened legal action over the proposed split announcing it would spell disaster for the racing industry in Australia.
Racing NSW controls a licence for Tabcorp which means Peter V’landys, the head of Racing NSW, could well take action should the demerger be ratified by shareholders.
Speaking to the Sydney Morning Herald, V’landys said: “My job is to protect the 50,000 participants in the NSW racing industry and as it currently stands this demerger would be a financial disaster for NSW Racing.
“Accordingly, we have a number of legal rights, and we will have no option but to enforce those rights unless Tabcorp guarantees the losses we will incur. It’s no secret that the wagering division has been performing poorly, so we are not going to be the ones left holding the failure they created.”