Feb 2 (Reuters) - Tabcorp Holdings Ltd said on Tuesday it had received multiple proposals for a potential sale of its wagering and media business, sending shares of the betting firm close to a one-year high.
The company’s shares jumped as much as 11.7% to A$4.58, hitting their highest since February last year.
Tabcorp’s wagering arm has come under pressure from intensifying competition as the industry faces a shift to online betting from traditional retail betting.
The company has also been hit by coronavirus-induced closures of betting shops and cancellation of sporting events, forcing it to take measures to shore up its balance sheet, including the sale of a 11.6% stake in smaller peer Jumbo Interactive Ltd.
The proposals were confidential, indicative, non-binding and there is no certainty any transaction will occur, Tabcorp said. It did not name the interested parties.
The Melbourne-based company added its board was assessing the proposals and will provide an update in due course.
Local media had first reported on the proposals and a plan involving the demerger of the wagering arm. (bit.ly/2MrcEKz)
Tabcorp said in November it had not received any proposals yet for the company or the wagering arm. (Reporting by Shruti Sonal in Bengaluru; Editing by Shounak Dasgupta)