Australia

Tabcorp to Sell its 11.6% Stake in Jumbo Interactive

Published

5 years ago

September 24, 2020

Niji Narayan

Tabcorp to Sell its 11.6% Stake in Jumbo Interactive

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Tabcorp Holdings Limited has entered into an agreement with Stockbroker UBS to sell its 11.6% stake in lottery company Jumbo Interactive.

Tabcorp will sell 7,234,178 shares in Jumbo at a price of AU$13.52 (US$9.69) per share for gross proceeds of approximately AU$98m (US$70.24m). Profits after taxes are expected to reach AU$69m (US$49.46m).

“Following the recent extension of our long-standing commercial distribution relationship with Jumbo for a ten-year term to August 2030, there is no longer a strategic rationale for Tabcorp’s shareholding in Jumbo,” David Attenborough, MD and CEO of Tabcorp, said in a release to the Australian Securities Exchange.

She said the company had decided to monetise its participation in the online lottery operator and use the profits to boost financial results in the first half of 2021 and strengthen its balance sheet.

Proceeds will also support Tabcorp’s move towards a “recently revised target gearing range.”

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Niji Narayan

Niji Narayan has been in the writing industry for well over a decade or so. He prides himself as one of the few survivors left in the world who have actually mastered the impossible art of copy editing. Niji graduated in Physics and obtained his Master’s degree in Communication and Journalism. He has always interested in sports writing and travel writing. He has written for numerous websites and his in-depth analytical articles top sports magazines like Cricket Today and Sports Today. He reports gaming industry headlines from all around the globe.