The Tabcorp Holdings Ltd (ASX: TAH) share price is lifting from the open today and is currently trading 1.16% higher at $5.24.
It's roughly in line with the S&P/ASX 200 Index (ASX: XJO) which is also trading 1.2% higher from the open today.
The Tabcorp share price might be on the move today following a company announcement yesterday regarding its spinoff of The Lottery Corporation Ltd (XASX: TLC).
What did Tabcorp announce?
Tabcorp advised that S&P Dow Jones Indices has announced it will make changes as a result of Tabcorp's planned demerger from The Lottery Corporation.
Specifically, the ratings agency will make changes to the benchmark S&P/ASX 200 Index to reflect the separately formed entities.
Tabcorp said:
[A]s a result of the scheme of arrangement under which [Tabcorp] will spin-off [TLC] Tabcorp Holdings Limited, Tabcorp Holdings Limited will spin-off 1 share of The Lottery Corporation Limited for every 1 Tabcorp Holdings Limited share held. The Lottery Corporation Limited will be added to the S&P/ASX 200 Index effective prior to the open of trading on May 24, 2022 at a zero price.
There will be no removal from the S&P/ASX 200 Index as a result of the inclusion of The Lottery Corporation Limited.
Last week, Tabcorp shareholders "overwhelmingly approved " the demerger following a shareholder vote, throwing their full support behind the move.
Subject to Supreme Court approval, Tabcorp says TLC shares should begin trading "on a deferred settlement basis" on Tuesday 24 May 2022, the same day as TLC's inclusion into the ASX 200.
Tabcorp share price snapshot
In the last 12 months, the Tabcorp share price has clipped a 3.5% gain and has gained around 4% this year to date. Prices have compressed in the last month of trade and are down 2.6% in that time.
The company has a current market capitalisation of $11.6 billion.
