Tabcorp sells 11.6% stake in online lottery business Jumbo Interactive for about A$100 million.
The gambling operator will sell more than 7 million shares in Jumbo Interactive. David Attenborough is the chief executive and managing director at Tabcorp. For his words, there was no need for the business to get a stake in Jumbo. Because it formalised a long-time extension of its reseller agreement until August 2030.
According to the agreement, Jumbo will pay $15 million to Tabcorp gambling operator. Additionally, it will pay a service fee of 4.65 per cent of subscription revenue. It is dedicated to selling rights for lottery products in places such as NSW, Tasmania, Northern Territory, South Australia, Victoria and Australian Capital Territory.
He said that there is no longer reason for a shareholding in Jumbo. Despite long-term commercial relationships with Jumbo for a ten-year term to August 2030. They decided to monetise this investment. So, the resulting capital will be used for increasing the balance sheet. Also, support the move towards the recently revised target gearing range.
Tabcorp thinks that the company will profit $69m after-tax.
In conclusion, the Australian gambling operator Tabcorp sells 11.6% in Jumbo Interactive.
Click here to visit an official page of Tabcorp Company.
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