Last month, Tabcorp said it had received a number of “unsolicited approaches and proposals” to acquire its wagering and media division, with Entain among those confirmed to have put forward an offer.
At the time, Tabcorp said that no firm bids had been made, nor was there any certainty that any transaction would take place.
Taborp has now confirmed that while the proposals valued the Wagering and Media arm at approximately AUS$3.0bn (£1.67bn/€1.94bn/US$2.29bn), its board concluded these offers do not adequately value the segment.
In response, Tabcorp said it will now undertake a strategic review to assess and evaluate all structural and ownership options, in order to maximise the value of its businesses for the benefit of shareholders.
These options, Tabcorp said, could include a potential sale of the Wagering and Media business to either a third party or via a potential demerger. This could be implemented via a separation of the Wagering and Media arm or the Lotteries and Keno business.
As part of this process, Tabcorp said it would also resume the strategic review of its gaming services business.
“The assessment of Tabcorp’s strategic and ownership options includes, but is not limited to, a demerger or sale of one or more of our businesses,” Tabcorp chairman Steven Gregg said.
“Our clear objective is to ensure that we fully maximise the value of Tabcorp’s gambling entertainment businesses for our shareholders.”
While the strategic review takes place, Tabcorp said that its search to identify and appoint a replacement for managing director and chief executive David Attenborough will be put on hold.
Tabcorp announced in July last year that Attenborough would step down from both roles during the first half of 2021, but he will remain with the business while the strategic review is in progress.