Tabcorp implements lottery demerger scheme
The scheme is effective immediately from today (1 June), while holding statements will be despatched to shareholders in The Lottery Corporation on 3 June.
Shares will trade on the ASX on a normal settlement basis under the code “TLC”.
Implementation of the scheme all but finalises the demerger of Tabcorp’s lottery operations from its wagering, media and gaming services.
Tabcorp first announced plans to spin off its Lotteries and Keno arm in July 2021 following a strategic review of its operations. The review began four months earlier and considered a number of structural and ownership options for Tabcorp to create greater value for its shareholders, including potentially selling off its wagering and media business.
At the time, Tabcorp said a number of unsolicited proposals had been made for the division, including bids from Entain, Betmakers and Apollo Global, but the business said none of these represented the true value of the division.
While Tabcorp opted to retain its wagering arm, it instead decided to spin off the lotteries business, which would result in two separate companies.
One of these businesses was renamed The Lottery Corporation and comprises most of the former Tatts business, but without gaming services. The second business was named New Tabcorp and includes the wagering and media arm alongside gaming services.
Last month, Tabcorp’s shareholders overwhelmingly voted to back the demerger. Some 98.78% of the total votes cast during Tabcorp’s General Meeting and Scheme Meeting were in favour of the proposal, with just 0.17% voting against and 0.89% open votes.
Shortly after this vote, the Supreme Court of New South Wales approved the demerger. The group then lodged a copy of the orders made by the court with the Australian Securities and Investments Commission (ASIC) on 23 May, with the scheme effective from that date.
In relation to the demerger, this week it was announced that David Attenborough will retire as managing director and chief executive, with replacement Adam Rytenskild moving into both positions from today
Steven Gregg also retires as chairman and non-executive director of Tabcorp in order to take up the same roles with The Lottery Corporation. Bruce Akhurst will now assume the role of chairman of Tabcorp.
Meanwhile, Adam Newman stepped down as chief financial officer to take up the same role at The Lottery Corporation, with Daniel Renshaw becoming CFO of Tabcorp.
Patrick McGlinchey also exited as chief legal and risk officer and co-company secretary of Tabcorp, switching to the same roles within The Lottery Corporation, though Chris Murphy will remain as company secretary of Tabcorp.
Brett Chenoweth, Raelene Murphy and Karen Stocks were formally appointed to Tabcorp’s board as non-executive directors, while Harry Boon and Anne Brennan stepped down from the board to become non-executive directors of The Lottery Corporation.