Big industry news last weeks was the announcement of Tabcorp’s takeover bid of gaming technology group Intecq for $128 million.
The Australian wagering giant says it’s looking to strengthen its gaming services division through the acquisition of the publicly listed company (ASX code: ITQ) and proposes to acquire 100 per cent of Intecq’s issued capital by way of a Scheme of Arrangement.
The Intecq board has backed the Tabcorp bid and Intecq Executive Chairman Tony Toohey and CEO Peter Walford will remain with the business following the completion of the acquisition.
In the same week, Tabcorp Holdings Ltd posted a net profit A$169.7 million for the full year ended June 30, 2016, down 49.3 percent year-on-year.
Tabcorp said the results were largely impacted by significant items after tax of A$16.2 million, compared to a one-off tax benefit of A$163.2 million in 2015. The significant items included costs relating to establishment of Sun Bets (A$14.4 million) and AUSTRAC civil proceedings (A$13.6 million), partially offset by income tax benefits relating to NSW retail exclusivity payment, and R&D claims (A$11.8 million).
Tabcorp’s Sun Bet’s joint venture in Britain with News Corporation went live last Wednesday and is being heavily promoted by The Sun tabloid newspaper.
Meanwhile the Tatts Group looks set to buy the local gaming monitoring operations of Greek wagering business Intralot in a deal that could be worth between $90 – $100 million. Intralot’s main business is providing the electronic monitoring system for all hotel and club gaming machines in Victoria and collecting information on gaming machines for regulators.
The acquisitions have reignited speculation about merger talks between Tabcorp and Tatts Group, after the two companies had gone close to clinching a deal late last year before talks broke down.