Tabcorp’s plan to break off its lottery and keno operations has been approved by New South Wales’ Supreme Court.
The proposed demerger will see Tabcorp retain control of wagering, media and gaming services, while a new, Australian Stock Exchange-listed company – The Lottery Corporation – will be responsible for lotteries and keno.
Tabcorp shareholders overwhelmingly approved the measure on 12 May, and having now received further approval from the Supreme Court of New South Wales, the demerger is almost complete.
On Monday 23 May, Tabcorp intends to lodge a copy of the orders made by the Supreme Court with the Australian Securities and Investments Commission.
The Lottery Corporation shares are expected to commence trading on the Australian Stock Exchange the following day, under the code TLC and initially on a deferred settlement basis. Tabcorp shares, meanwhile, will trade on an ex-demerger entitlements basis from 24 May.
Tabcorp expects the demerger to be implemented on Wednesday 1 June, with TLC shares to commence trading on a normal settlement basis from 2 June.
Steven Gregg, Tabcorp’s Chairman, explained the company’s rationale behind this demerger in his formal address to the General and Scheme Meetings on 12 May
He said: “The Board determined to pursue this demerger as it was considered to be the most certain and timely path to maximise value for Tabcorp shareholders, with lower regulatory impediments.
“Grant Samuel, the independent expert appointed by Tabcorp, has also concluded that the demerger is in the best interests of Tabcorp shareholders. The demerger represents the next phase in the Tabcorp journey.”