Tatts Group Ltd Not in favor of the Pacific Consortium’s proposal
Not in favor of the Pacific Consortium’s proposal: Tatts Group Ltd (ASX: TTS) reported that the group did not really find the Pacific Consortium’s acquisition proposal (led by Macquarie Group) superior to Tabcorp’s merger proposal. The group believed that the acquisition proposal from Tabcorp Holdings was better than Pacific Consortium’s offer of $4.40 to $5.00 of cash and shares per TTS share. Tabcorp tabled an offer of $4.34 per share with an intention to acquiring all of Tatts’ businesses and creating a gaming giant worth $11.3bn. TTS stock fell over 3.9% in the last four weeks (as at January 27, 2017) and we believe this pressure might continue. In fact, the group expects a 13.8% fall in their Lotteries EBITDA for the first half of 2017 against the prior corresponding period. Further, TTS net debt has been said to be about $1.2 billion. This in fact was not considered appropriately in Pacific Consortium’s acquisition proposal.
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