Tabcorp to buy ACTTAB for $105.5m

Wagering and gaming company to buy ACT government-owned business.

Tabcorp (TAH) will purchase ACTTAB from the ACT government for $105.5 million and will issue long-term gaming licences from the territory government. 

As part of the acquisition, the ACT government will issue 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 acquisition of ACTTAB, a territory-owned provider of totalisator and fixed-odds wagering, Keno and Trackside products, is subject to regulatory approvals and will be funded through existing bank facilities.

Tabcorp expects the acquisition will generate earnings before interest, tax, depreciation and amortisation of approximately $14m in the year following completion of integration of the business and will be earnings per share accretive.

The integration is expected to take around 12 months. 

ACTTAB 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.  
"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," Tabcorp managing director David Attenborough said.

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