New York-based alternative investment manager Apollo Global Management (NYSE: APO) has made a revised $4 billion offer for the wagering and media and gaming services businesses of Tabcorp (ASX: TAH).
Apollo is alternatively offering $3.5 billion for the wagering and media business alone.
In a 6 May announcement, Tabcorp said its board had not yet formed a view on the revised non-binding indicative proposal and would assess it in the context of a previously announced strategic review.
Tabcorp said the proposal was subject to numerous conditions including due diligence, arranging of financing, receipt of regulatory approvals and obtaining third party approvals and consents.
Tabcorp’s strategic review will look at a potential sale of the wagering and media business or a potential demerger of either the wagering and media business or the lotteries and Keno business.
On 27 April, Tabcorp announced it had received a revised $3.5 billion acquisition proposal for its wagering and media business from UK business Entain plc. Entain owns bookmaker Ladbrokes and other gaming businesses.
Tabcorp had announced on 29 March that it would undertake the strategic review after receiving several proposals to acquire its wagering and media business at around $3 billion. The board had decided the proposals did not put an adequate value on the business.
Stakeholders including Investors Mutual, Perpetual and Tanarra Capital, had since last year been urging Tabcorp to explore separating its wagering and lotteries businesses into separate companies.
Melbourne-based Tabcorp is Australia’s largest gambling company, employing more than 5,000 people and reported annual revenue of $5.482 billion in the 2019 financial year.