The Tabcorp Holdings Limited (ASX: TAH) share price will be one to watch closely on Friday morning. This follows the gambling company's announcement after market close yesterday of a revised takeover offer.
The Tabcorp share price was trading at $5.01 at Thursday's closing bell after edging 0.2% higher for the day.
Details of the revised proposal
Tabcorp shares will be in focus this morning after the company revealed it has received an improved proposal.
According to its release, Apollo Management has put a revised offer on the table to acquire Tabcorp's Wagering & Media and Gaming Services businesses.
Headquartered in New York, Apollo Management is an international private equity firm that manages capital for hundreds of fund investors. The company has offices in dozens of countries looking after pension funds, sovereign wealth funds, university endowments, charitable foundations, financial institutions, and family offices.
The revised unsolicited, non-binding and indicative proposal matches a prior bid by United Kingdom sports betting and gambling company Entain plc (LON: ENT).
Both companies have tabled an offer of $3.5 billion for Tabcorp's Wagering & Media business. However, Apollo Management has put forward a further offer to also acquire Tabcorp's Gaming Services assets for a combined value of $4 billion.
The revised proposal from Apollo Management is subject to a number of conditions. These include due diligence, finance arrangements, receipt of all regulatory approvals (including ACCC and FIRB), and third-party consents.
Tabcorp management noted that it has not yet decided on the revised proposal and will assess it in line with its strategic review.
The board is currently considering whether to sell its Wagering & Media business to a third party or demerge the asset from its lotteries arm.
How has the Tabcorp share price performed lately?
It has been a good 12 months for Tabcorp shareholders with the company's share price up over 60%. Year-to-date performance has also been solid, with the Tabcorp share price posting gains of around 28%. It's worth noting that Tabcorp shares reached a multi-year high of $5.06 on Wednesday.
Based on the current share price, Tabcorp commands a market capitalisation of about $11.1 billion, with 2.2 billion shares outstanding.
