Tabcorp shareholders approve lottery demerger proposal
Australian operator set to split into two separate entities as overwhelming majority of investors back decision
Tabcorp is about to enter a new era after shareholders approved the demerger of its lottery and keno segment.
The demerger, first proposed in July 2021 following a series of takeover bids from Entain and Apollo Global Management, was given the green light by more than 99% of shareholders.
The decision will see Tabcorp list as two separate entities on the Australian Stock Exchange (ASX), in the shape of the newly formed Lottery Corporation and New Tabcorp.
New Tabcorp consists of the Tab, Sky Racing, Sky Racing World, PGi and Max brands.
Tabcorp chair Steven Gregg will assume the role of chair at the Lottery Corporation, supported by Sue van der Merwe as CEO.
The two firms are expected to list on the ASX on 24 May on a deferred settlement basis following standard regulatory approval from the Supreme Court of New South Wales and the Australian Securities and Investments Commission.
Shares would commence normal settlement basis on the ASX on 2 June, following the official demerger implementation on 1 June.
Bruce Akhurst will serve as chair of New Tabcorp, with Adam Rytenskild appointed as CEO.
Gregg said: “We are pleased to have received shareholder approval for the demerger of the Lottery Corporation from Tabcorp.
“This is an important milestone in repositioning the group’s portfolio and setting up Tabcorp and the Lottery Corporation for future success,” he added.
In a call to investors before the vote, Gregg also outlined the anticipated future benefits that would derive from the demerger.
He said: “The board anticipates that the Lottery Corporation will be well positioned to continue to generate attractive returns for shareholders, driven by its strong cash flow generation, demonstrated ability to drive growth through product innovation and active game portfolio management as well as future potential upside from further enhancing the customer experience and increasing digital penetration.
“The board anticipates that New Tabcorp will also be well positioned to deliver a compelling customer experience via its omnichannel model and through simplifying and streamlining its Max gaming business.
“There is also potential upside from any future change in the Australian wagering and gaming industry,” he added.