Tabcorp share price rangebound following lotto demerger vote

Shareholders have had their final say on the demerger-decision.

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Key points

  • Tabcorp shares are rangebound today amid news of the company's vote on demerging from The Lottery Corporation 
  • Shareholders voted with an overwhelming majority to proceed with the demerger 
  • Tabcorp shares are less than 1% in the green for the last 12 months 

Shares of Tabcorp Holdings Ltd (ASX: TAH) are rangebound today and are currently less than 1% down at $5.03 apiece.

The Tabcorp share price has traded in a range of $4.975 –$5.065 to the point of writing in Thursday’s session.

What’s up with the Tabcorp share price today?

Shareholders had their chance to vote on the company’s decision to proceed to a demerger of The Lottery Corporation from Tabcorp.

Shortly after voting, it was revealed that Tabcorp shareholders have “overwhelmingly approved” the demerger.

Tabcorp Chairman, Steven Gregg was pleased on the result.

We are pleased to have received shareholder approval for the demerger of The Lottery Corporation from Tabcorp.

This is an important milestone in repositioning the Group’s portfolio and setting up Tabcorp and The Lottery Corporation for future success.

What now?

Tabcorp says that it will now seek orders from the Supreme Court of NSW for approval of the merger. The hearing is scheduled for Friday 20 May 2022.

“If the Scheme is approved by the Court,” Tabcorp says, “Tabcorp proposes to lodge a copy of the orders made by the Court with the Australian Securities and Investments Commission on Monday, 23 May 2022 and the Scheme will become effective on that date.”

“Subject to approval of the Scheme by the Court, The Lottery Corporation shares are expected
to begin trading on ASX on a deferred settlement basis on Tuesday 24 May 2022.”

Investors can determine their entitlements to The Lottery Corporation shares from 7pm (Sydney time) on Wednesday, 25 May 2022.

Tabcorp shares are less than 1% in the green for the last 12 months and are flat this year to date as well.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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