Entain

Offer to acquire Tabcorp’s wagering division

  • Sectors : Gaming
  • Companies : Entain

Ratings and price correct at time of issue.

  • Entain

    Closing Price: 1284p

  • RATING 13/12/17

  • PREVIOUS RATING N/A

DAVY VIEW

While far from a done deal, Entain’s offer to acquire Tabcorp’s Australian wagering business is strategically interesting for several reasons. Firstly, it would significantly improve its position in the attractive Australian market (anti-trust allowing, pro forma share of the non-retail market >40%; creates unique omni-channel position), reportedly at a favourable price. Secondly, it would present Entain with the opportunity to arrest Tabcorp’s disappointing recent performance in the non-retail channel by deploying its superior offering and operational approach. Finally, changed ownership of a strategically important asset could have market-wide implications. We wonder if any resulting convergence of Tabcorp’s business model with non-retail corporate bookmakers may facilitate the structural expansion of the Australian online market opportunity over the medium term (with positive implications for in-play wagering over time).

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Feb 2 2021, 12:30 GMT

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