Ladbrokes owner Entain increases bid for Australian giant Tabcorp to £2bn

Ladbrokes and Coral's owner Entain has increased its offer for Australian gambling giant Tabcorp's wagering and media business to nearly £2 billion.

Tabcorp said it would assess the bid of Aus $3.5bn (£1.96bn/€2.25bn) as part of a strategic review of the business it announced earlier this year.

Entain is already one of the smaller players in the Australian market through its Ladbrokes and Neds brands, but a deal with Tabcorp would make it the biggest racing and sports betting operator in the country.

The company made a bid of around Aus$3bn this year, which was rejected as being too low. It said in a statement on Tuesday morning: "Entain believes that the revised proposal is compelling both in terms of the value it represents for Tabcorp shareholders in cash, and certainty of deliverability.

"The proposed transaction would be in line with Entain’s current M&A [mergers and acquisitions] strategy, and presents an opportunity to acquire an attractive business, which when combined with Entain’s existing Australian business, would create a leading, integrated multi-channel and multi-brand wagering company."

Tabcorp has been criticised for the performance of its wagering arm and its strategic review is investigating a potential sale of the business to a third party or a demerger from its more successful lotteries operation.

Tabcorp said of Entain's revised bid: "The Tabcorp board has not yet formed a view on the merits of the revised proposal and will assess it in the context of the previously announced strategic review.

"As stated, the objective of the strategic review is to assess and evaluate all structural and ownership options to maximise the value of Tabcorp’s businesses for the benefit of shareholders."

Among the potential bidders for Tabcorp is private equity group Apollo Global Management, who were the main rival to Caesars Entertainment for William Hill and which is being linked to a bid for Hills's non-US business.

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