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.