Tabcorp committed to completing Tatts merger
Tabcorp Chairman Paula Dwyer, has spoken about an “important but challenging year” for the company and re-iterated Tabcorp’s commitment to completing its merger with the Tatts Group.
Speaking at the company’s Annual General Meeting, Dwyer said that throughout the 2017 financial year, Tabcorp had continued the repositioning of the business and had invested in new growth opportunities.
“Most notably,” she told the AGM, “we announced and progressed the proposed combination with Tatts which is planned to deliver significant value to shareholders and other stakeholders of both companies. Both Tabcorp and Tatts are committed to completing the combination by the end of 2017.”
Speaking in more detail about the deal, Dwyer added: “Our priority remains to successfully complete the proposed combination with Tatts, which will be transformational for Tabcorp.
“Over the past 12 months we have been working closely with Tatts to implement the transaction, and planning for the integration of our two businesses.
“The proposed combination will bring together two highly complementary businesses and a strong pool of talent from within each organisation, ensuring that the combined entity is well positioned to invest, innovate and compete in a rapidly evolving environment.”
She added: “The proposed transaction is expected to unlock substantial value for Tatts and Tabcorp shareholders, with at least $130m per annum of EBITDA from synergies and business improvements expected to be delivered in the first full year after integration of the companies.”
Earlier in 2017 the Australian Competition Tribunal granted authorisation for the deal to go ahead, but this decision was challenged in the Federal Court by the ACCC and CrownBet. The Court dismissed CrownBet’s application for review, while an aspect of one of the ACCC’s grounds for review was upheld, so the matter was referred back to the Tribunal for redetermination. The Tribunal has now considered the matter, but has yet to deliver its decision.