Tabcorp Holdings Limited (“Tabcorp”) today announced that it has agreed with the ACT
Government to acquire ACTTAB for $105.5 million.
ACTTAB is a Territory-owned provider of totalisator and fixed odds wagering, Keno and
Trackside products. The business offers its services and products through a distribution
network comprised of 53 retail outlets located throughout the ACT as well as telephone
and internet platforms.
As part of the acquisition, the ACT Government will issue to Tabcorp a 50 year exclusive
totalisator licence, a sports bookmaking licence for an initial term of 15 years with further
rolling extensions to a total term of 50 years, and ongoing approvals to offer Keno and
Trackside products for 50 years.
The ACTTAB totalisator and sports bookmaking licences are highly attractive. Ongoing
payments to be made by Tabcorp in respect of the totalisator are limited to an annual
licence fee of $1 million and CPI increases. There is no wagering tax payable to the
Territory on the totalisator licence. The wagering tax payable to the Territory on the sports
bookmaking licence currently has an expected effective tax rate of less than 1% of turnover.
Tabcorp's close proximity to the ACT market, as well as existing pooling and fixed odds
management arrangements with ACTTAB, provide operational alignment and a deep
understanding of ACTTAB's market.
Tabcorp's Managing Director and CEO, David Attenborough, said: "The acquisition of
ACTTAB presents a unique opportunity for Tabcorp to secure long-term licences on highly
favourable terms in a jurisdiction that is complementary to our existing Wagering and
Keno businesses in Victoria and New South Wales. We look forward to leveraging our
capabilities to strengthen the product offering available to ACTTAB customers and to
deliver the best outcome for the racing industry and other stakeholders including our
venue and community partners."
Tabcorp intends to fund the acquisition from existing bank facilities. Tabcorp expects the
acquisition will generate EBITDA of approximately $14 million in the year following
completion of integration of the business and will be EPS accretive. Integration is
expected to take around 12 months.
The ACT Government has agreed to certain protections which provide greater regulatory
certainty in respect of the key terms of the licences.
The acquisition is subject to regulatory approvals, including ACCC clearance. Tabcorp
expects to announce completion of the acquisition within the next few months.
Tabcorp is recognised as a world leader in sustainability and in the responsible service of
gambling. The 2013 Dow Jones Sustainability Index has ranked Tabcorp as the global
gambling industry leader for eight of the past nine years.
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