Tabcorp implements lottery split program

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Tabcorp has implemented the plan to spin off The Lottery Corporation, with the company’s shares set to begin trading on the ASX from tomorrow (June 2).

The program is effective immediately from today (June 1), while holding statements will be sent to shareholders of The Lottery Corporation on June 3.

The shares will trade on the ASX on a normal settlement basis under the symbol “TLC”.

The implementation of the program virtually completes the spin-off of Tabcorp’s lottery operations from its betting, media and gaming services.

Tabcorp first announced plans to spin off its Lotteries and Keno arm in July 2021 following a strategic review of its operations. The review began four months earlier and considered a number of structural and ownership options for Tabcorp to create greater value for its shareholders, including the potential sale of its betting and media businesses.

At the time, Tabcorp said a number of unsolicited proposals had been made for the division, including offers from Entain, Betmakers and Apollo Global, but the company said none of them did not represent the true value of the division.

While Tabcorp opted to keep its betting arm, it instead decided to spin off the lottery business, which would result in two separate companies.

One such business has been renamed The Lottery Corporation and includes most of Tatts’ former business, but without gaming services. The second company was called New Tabcorp and includes the betting and media arm alongside gaming services.

Last month, Tabcorp shareholders overwhelmingly voted in favor of the split. Some 98.78% of the total votes cast at Tabcorp’s General Meeting and Program Meeting were in favor of the proposal, with only 0.17% voting against and 0.89% open votes.

Shortly after that vote, the New South Wales Supreme Court approved the split. The group then filed a copy of the court orders with the Australian Securities and Investments Commission (ASIC) on May 23, with the scheme taking effect from that date.

As for the split, it was announced this week that David Attenborough will retire as chief executive and managing director, with replacement Adam Rytenskild taking over both roles as of today.

Steven Gregg is also retiring as Chairman and Non-Executive Director of Tabcorp to assume the same roles within The Lottery Corporation. Bruce Akhurst will now assume the role of President of Tabcorp.

Meanwhile, Adam Newman stepped down as CFO and took on the same role at The Lottery Corporation, with Daniel Renshaw becoming Tabcorp’s CFO.

Patrick McGlinchey also left his position as chief legal and risk officer and co-secretary of Tabcorp, moving to the same roles within The Lottery Corporation, although Chris Murphy remains corporate secretary of Tabcorp.

Brett Chenoweth, Raelene Murphy and Karen Stocks were formally appointed to Tabcorp’s board as non-executive directors, while Harry Boon and Anne Brennan left the board to become non-executive directors of The Lottery Corporation .

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