Betmakers Technology extends losses on proposal to buy Tabcorp's wagering arm

Talius

31/05/2021 05:44

** Shares of digital wagering firm Betmakers Technology
Group Ltd  BET.AX  extend loss for a second straight session; 
fall as much as 15.7% to A$1.13
    ** Stock hits lowest since April 7; May's gains have been
wiped out after BET on Friday proposed a share plus cash deal to
buy Tabcorp's wagering arm, which is struggling from sporting
events halt and closure of betting shops due to the pandemic
 urn:newsml:reuters.com:*:nL3N2NE547
    ** BET, which has a market value of close to A$1.09 bln,
announced a A$4 bln($3.09 bln) bid to buy Tabcorp unit
    ** Deal will involve A$3 bln in shares and A$1 bln in cash,
likely to be funded by debt
    ** Brokerage Credit Suisse said Tabcorp was more likely to
demerge the division than accept Bet's bid to avoid numerous,
costly regulatory approvals
    ** Tabcorp previously received separate A$3.5 bln proposals
from British sports betting firm Entain  ENT.L  and U.S.-based
investment manager Apollo Management  APO.N 
    ** About 26.5 mln BET shares change hands compared to the
30-day average volume of about 7.6 mln shares
    ** BET has risen 2-fold this year, as of last close
    ** Tabcorp's shares fell as much as 1.2% to A$5.11, after
hitting its highest since Jan 1, 2018 on Friday
($1 = 1.2948 Australian dollars)

 (Reporting by Aditya Munjuluru in Bengaluru)
 ((aditya.srivastsav@thomsonreuters.com))