NSW Supreme Court green lights Tabcorp lottery demerger

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The Supreme Court of New South Wales has given its approval to the demerger of The Lottery Corporation from Tabcorp.

Under the proposals, Tabcorp intends to separate into two ASX-listed entities, named The Lottery Corporation and New Tabcorp.

The premise of the scheme is to allow for both the lottery & keno and the gaming divisions to provide benefits to shareholders, creating two ‘focused executive leadership teams’.

The plan received significant support from Tabcorp shareholders at the General Meeting and Scheme Meeting on May 12, with 98.78% of shareholders voting in favour of the demerger. Only 0.17% voted against while the rest either provided an open vote or abstained from voting.

Now, following approval from the Supreme Court, Tabcorp intends to lodge a copy of the orders with the Australian Securities and Investments Commission on May 23, when the scheme will become effective.

The Lottery Corporation securities are expected to commence trading on ASX on May 24 under the ASX code ‘TLC’, initially on a deferred settlement basis.

Tabcorp’s securities will trade on an ex-demerger entitlements basis from May 24, and the demerger is expected to be implemented on June 1.

The sale of The Lottery Corporation and shares and the Tabcorp shares is expected to be completed on June 23.