Vote of the Shareholders Will Decide the Demerger of Tabcorp’s Lottery and Keno

Vote of the Shareholders Will Decide the Demerger of Tabcorp's Lottery and Keno

The demerger plans of the Australian gambling platform seem to be reaching a verdict after the supreme of New South Wales called for a shareholder vote. The proposal for the demerger of Lottery and Keno was reportedly put forth in the best interest of the shareholders. However, the plan remained on hold since last year as the company was making a strategic review and assessment of the proposed model. As the plan is getting close to becoming year-long, the shareholders will be convening to decide on the demerger on the 12th of May, Following the court order. The demerger was initially proposed last July as the Tabcorp share values dipped. 

Significantly. Planning to maximize the share values, they suggested the creation of two separate companies, Lotteries & Keno and Wagering & GamingCo, registered with the Australian Securities Exchange. The distinct growth strategies, operating profiles, and market opportunities were expected to value each business separately. The idea was to re-rate the two companies and look for potential market opportunities.

The fast-growing cryptocurrencies are looked at as one of the potential areas for the Lottery and Keno to explore once the demerger happens. Tabcorp is looking serious about its ventures into crypto keno and lottery opportunities. When the demerger happens, this firm will expect institutional-level investments to boost its value. However, attracting investment needs the company to prove potential markets and opportunities. In that case, the crypto ecosystem would be a great addition to the company’s portfolio.

The other company, Wagering & GamingCo, already has wagering operator TAB, gaming services provider MAX, and other broadcasting and media services in its portfolio.

Previously, an independent expert was appointed to assess the advantages and drawbacks of the demerger. After extensive study, Grant Samuel, who was appointed for this job, concluded that the demerger would be in the best interest of the shareholders. In addition to this, the proposal also comes with unanimous support from the board of directors. The Tabcorp Board also expects a vote on capital reduction. Along with the demerger, this strategy will also be subjected to shareholder vote during the convention in May.

All the information regarding the demerger and the independent report will be made accessible to shareholders on the 8th of April. The scheme meeting will be organized along with the generator meeting on the 12th of May. The meeting will take place in the Whitelty Ballroom of Amora Hotel in Sydney. However, the shareholders are also given the option to attend the meeting via video conferencing.

Author: Connie Boyd