Tabcorp and Tatts Try Going Down the Aisle a Second Time; Tatts' FVE Lifted to AUD 4.40

Special Situations, Content Strategist, Smartkarma

Crispin Francis

Special Situations, Content Strategist

Smartkarma

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Back in November 2015, it was widely reported that Australian gambling operators <a href="https://www.smartkarma.com/entities/6837" target="_blank" data-smartkarma-citation="entities:6837:1">Tabcorp Holdings Ltd (TAH AU; TAH)</a> and <a href="https://www.smartkarma.com/entities/14615" target="_blank" data-smartkarma-citation="entities:14615:1">Tatts Group Ltd (TTS AU; TTS)</a> were discussing a merger.Both companies were quick to put an end to talks, citing that they had been unable to reach agreement on key transaction terms, particularly the nil-premium exchange ratio.They have finally agreed on a ratio. Today, the <a href="http://www.asx.com.au/asxpdf/20161019/pdf/43c316m5l7hg5w.pdf" target="_blank">companies have announced a merger</a> with TTS shareholders receiving 0.80 TAH scrip plus AUD 0.425 in cash.Below the fold, we take a look at the offer details and appraise the most interesting angle to this transaction, the anti-trust concerns stemming from this merger.

Back in November 2015, it was widely reported that Australian gambling operators Tabcorp Holdings Ltd (TAH AU; TAH) and Tatts Group Ltd (TTS AU; TTS) were discussing a merger.Both companies were quick to put an end to talks, citing that they had been unable to reach agreement on key transaction terms, particularly the nil-premium exchange ratio.They have finally agreed on a ratio. Today, the companies have announced a merger with TTS shareholders receiving 0.80 TAH scrip plus AUD 0.425 in cash.Below the fold, we take a look at the offer details and appraise the most interesting angle to this transaction, the anti-trust concerns stemming from this merger.

Tatts Group Ltd

Tatts / Tabcorp: Gambling on a Merger