The Tabcorp Holdings Limited (ASX: TAH) share price shot up by 4.93% on Thursday to $3.62 as the company announced a succession plan for replacement of its CEO and managing director, in addition to its chair.
What was in the announcement?
Tabcorp announced that it had selected existing non executive director Steven Gregg to succeed its current chair, Paula Dwyer. The transition will take place on 31 December 2020.
The company also announced that its CEO and managing director David Attenborough would retire in the first half of the 2021 calendar year. Tabcorp stated that a global search was underway to find a replacement.
In the announcement, Tabcorp's current chair Paula Dwyer said:
With the integration of Tatts nearing completion, the time is now right for a new Chairman to lead the Tabcorp Board into the future. The appointment of Steven Gregg will provide continuity of leadership and an orderly transition as the company identifies and transitions to a new Managing Director and CEO.
Steven's contribution to the Tabcorp board has been significant, and his track record in stewarding complex companies navigating change, including CEO transitions, positions him well for success as the next Chairman of Tabcorp.
The company's current CEO and managing director David Attenborough also commented on the succession plan, stating:
The combination with Tatts is now largely complete and, as such, now is the right time to start the process to appoint the new CEO who can work with the board and management team to take the company forward. Until then, I am totally committed to steering Tabcorp through the COVID-19 pandemic and ensuring that our businesses are best positioned for the future.
About the Tabcorp share price
Tabcorp is a gambling entertainment company providing lottery products, wagering, Keno and gaming products. The company operates a number of household name services including Keno, TAB, The Lott, George, Max, TGS, eBet and Sky Racing. Tabcorp is Australia's leading gambling provider with more than 5,000 employees.
In June, Tabcorp announced that its bank lenders had agreed to waive covenants on leverage and interest cover as the company works through the impact of the coronavirus pandemic. The company had liquidity $820 million available in cash and undrawn facilities in May. It resolved not to pay a final dividend for the 2020 financial year as part of the agreement with its lenders.
In the second half of 2019, Tabcorp earnings before interest, tax, depreciation and amortisation of $596.5 million, and revenue was up by 4.4% to $2,913.9 million.
The Tabcorp share price is up 73.2% from its 52-week low of $2.09, but is still down 20.61% since the beginning of the year. The Tabcorp share price has fallen 26.80% since this time last year.
