What’s MM thoughts on the TABCORP demerger?

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Question asked 06/05/2022

What’s MM thoughts on the TABCORP demerger?

Hi James & Team, Can I have your thoughts on the Tabcorp Demerger. I understand you will receive 1 The Lottery Corporation share for each Tabcorp share owned while retaining the same number of Tabcorp shares. Do you see the demerger resulting in increased valuation for the 2 companies combined? or is it best to sell your Tabcorp shares prior to the demerger. regards

Answer

Hi Debbie,

The $10bn demerger of TAH is an effort by the gambling company to create value for shareholders by splitting itself in two i.e. the lotteries and wagering businesses will have separate ASX listings. We see no surprises now with this deal while the stock looks fairly priced around $5.25 i.e. a potential sell if better opportunities surface elsewhere into market weakness.

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Tabcorp (TAH)

LAST UPDATED 06/05/2022 11:45

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