The Tabcorp Holdings Limited (ASX: TAH) share price is finding renewed support on rumours that it will get another marriage proposal.
It's nice to be wanted by so many! This time, the lottery and wagering group could be wooed by wagering technology provider Betmakers Technology Group Ltd (ASX: BET).
The speculation doing the rounds this time is that Betmarkers' advisor and bigwig bookie Matthew Tripp is close to making an offer for Tabcorp, reported The Australian.
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Tabcorp merger with Betmaker could unlock $5bn in value
The article didn't name any sources but it claimed that Tripp is working with Goldman Sachs to engineer a merger between the two.
The transaction could unlock $5 billion in value for shareholders in the combined entity, according to The Australian.
Betmaker share price punt already in the money
Tripp owns around 92 million shares of Betmakers, including his performance rights. He bought the sizable stake in February this year for around $25 million and he's already well in the money.
Tripp's investment is worth close to $100 million given that the Betmakers share price jumped over 4% today to $1.55 on the takeover rumour.
It's understood that Tripp's initial approach to Tabcorp over Christmas last year was rebuffed.
Tabcorp share price bolstered by two other bids
Tabcorp is already being pursued by two others. Ladbrokes owner Entain made a $3.5 billion proposal to buy Tabcorp's Wagering and Media unit.
Meanwhile, Apollo Global Management put forward a $4 billion deal to buy Tabcorp save for its lotteries business.
Things won't be the same for the Tabcorp share price
It looks likely that Tabcorp won't survive in its current form given that a number of key shareholders are unhappy with its performance.
The story is not unlike the debacle facing the Crown Resorts Ltd (ASX: CWN) share price, although not as controversial. Coincidentally, Crown is mulling a merger with rival the Star Entertainment Group Ltd (ASX: SGR) share price.
Tabcorp is working with UBS on the best option to unlocking value for shareholders. Management is expected to provide a game plan to investors on June 30.
Besides contemplating a merger or the sale of all or part of the group, Tabcorp could also spin-off its Wagering and Media division into a separately listed ASX entity.
Betmakers market cap stands at around $1.3 billion compared to Tabcorp's $11.3 billion market value.
