Australian lottery, gaming and wagering corporation Tabcorp is moving ahead with its plans to demerge its lottery business after shareholders ‘overwhelmingly’ voted in favour of the changes.
Under the proposals, the proposed new business structure would see Tabcorp separate into two ASX-listed entities, named The Lottery Corporation and New Tabcorp.
The firm argued that the demerger would allow for both the lottery & keno and the gaming divisions to provide benefits to shareholders, creating two ‘focused executive leadership teams’.
Hosting the vote at its General Meeting, Tabcorp secured 98.78% shareholder approval in favour of demerging The Lottery Corporation. Meanwhile, 0.17% voted against the motion and the rest either provided an open vote or an abstention.
Tabcorp Chairman Steven Gregg commented: “We are pleased to have received shareholder approval for the demerger of The Lottery Corporation from Tabcorp. This is an important milestone in repositioning the Group’s portfolio and setting up Tabcorp and The Lottery Corporation for future success.”
Moving forward, Tabcorp is now seeking to obtain regulatory approval for the demerger via orders from the Supreme Court of New South Wales.
Should those orders be given, the firm aims to submit those orders to the Australian Securities and Investments Commission on May 23, with the scheme being valid from that date.
The Lottery Corporation shares are expected to begin trading on the ASX on May 24.