BetMakers announced a “material acquisition” and requested from the Australian Stock Exchange (ASX) that it halted the betting company’s stock. BetMakers’ company secretary, Charly Duffy, asked the ASX to stop all trading activity on the company’s shares until June 21.
Trading Halt Due to Tabcorp Takover Bid?
According to the letter, BetMakers said they expect that the halt they ask for will be granted, as they don’t see any reasons why that wouldn’t happen.
ASX responded affirmatively to BetMakers request. It said that BetMakers Technology Group’s securities would be placed in a “trading halt” and will remain like that until June 21, provided ASX changes its decision.
The stop of trading with BetMakers shares is a sign that something big might soon be announced by BetMakers, and it will most likely involve Tabcorp’s Wagering and Media arm.
Tabcorp’s directors were scheduled to meet on Sunday, and they had one big thing to discuss during that meeting – takeover bids. BetMakers is one of the companies that has made a takeover proposal for Tabcorp’s Wagering and Media business but they are not considered as favourites for the deal.
Cash and Equity Bid Might Not Be Good Enough
BetMakers made a $3.1 billion bid in cash and equity for Tabcorp’s prized asset about a month ago. However, they had competition for Tabcorp’s betting and media department, as both Entain Plc (Ladbrokes, Neds owner) and Apollo Global Management had already made bids for the same Tabcorp division.
BetMakers might have made an enticing bid on the face of it, but one thing that doesn’t work in their favour is the type of deal they are offering.
Both Entain and Apollo had cash-only proposals for Tabcorp’s Wagering and Media arm. However, because BetMakers are a smaller company, they couldn’t produce a big enough cash-only deal. Instead, they went with a cash and equity proposal.
Tabcorp Investors Prefer Cash
And while retaining some ownership over the new wagering business might be enticing for some Tabcorp investors, for most of them it isn’t.
Tabcorp’s Wagering and Media arm is one of those poorly run businesses that investors would prefer to sever ties with, and most of them will probably prefer a cash-only deal.
Australia’s Best Bookmaker Can Help
On the plus side, though, BetMakers have an ace up their sleeve called Matthew Tripp. Tripp is a well-known betting figure in Australia. He made Sportsbet into one of Australia’s most popular bookmakers and seems to have the Midas touch when it comes to launching super-successful betting operators.
He is also quite good at striking deals. BetMakers hope that Tripp’s influence will tip the scales in their favour and that their bid would trump the Entain and Apollo ones.