Apollo Global Management Sweetens Bid for Tabcorp’s Betting and Broadcasting Arm
The US-based private investment firm, Apollo Global Management, has increased its proposal for the troubled Australian gaming behemoth, Tabcorp. They’ve presented a bid of $3.5 billion AUD, seeking to purchase Tabcorp’s betting and broadcasting branch. This mirrors a prior proposal submitted by the British gaming company Entain Plc in 2021. Notably, Apollo has also indicated an interest in procuring Tabcorp’s gaming services unit, Lotteries & Keno, in addition to the betting and broadcasting segment, for a combined sum of $4 billion AUD.
Tabcorp’s leadership is presently evaluating the proposition but has not reached a definitive conclusion. Several obstacles persist, including securing funding, finalizing due diligence, and obtaining the required regulatory permissions.
This situation arose because Tabcorp has been encountering challenges and commenced a strategic assessment to investigate all avenues for optimizing shareholder returns. This piqued the interest of various entities, including Apollo and even media tycoon Rupert Murdoch, whose Fox Corporation aims to broaden its footprint in Australia. Tabcorp’s board has been deliberating whether to divest the struggling betting and broadcasting division or potentially separate it into an independent publicly traded entity.
