市场见解

Expert expects demerger to benefit Tabcorp (ASX:TAH) share price

A proposed demerger could be good news for investors, according to this analyst…
The post Expert expects demerger to benefit Tabcorp (ASX:TAH) share price appeared first on The Motley Fool Australia. –

The Tabcorp Holdings Ltd (ASX: TAH) share price could be set to benefit from its proposed demerger.

According to one industry expert, the demerger of its lotteries business represents greater long-term potential for shareholders.

Let’s take a look at what this industry expert had to say and why the Tabcorp share price could benefit.

Tabcorp share price could benefit from demerger

Recently, a senior analyst from Montgomery Investment Management penned an article on Tabcorp’s proposed demerger.

The analyst noted the proposed demerger could provide a better outcome than a trade sale for shareholders.

According to the article, the demerger would “provide potential bidders with a level playing field and greater transparency”.

In addition, the analyst said strong and stable cash flow and moderate growth would see Tabcorp’s separate lotteries and Keno business get rerated by the market.

As a result, the article noted the new business could get the attention of income-seeking pension funds.

The analyst also highlighted that the broader market did not view the demerger as a positive for Tabcorp.

According to the article, this was due to the perception that a trade sale would generate greater value. In addition, higher costs associated with the demerger could impact Tabcorp’s share price.

Overall, the analyst noted a demerger would allow both entities to focus on and control their separate strategies.

More information on Tabcorp’s demerger

Earlier this month, Tabcorp announced the conclusion of a strategic review. As a result, the company is contemplating a decision to demerge its lotteries and Keno business. The Tabcorp share price fall sharply on the news.  

A demerger would see two separately listed companies — the standalone lotteries and Keno business, and the existing listing of Tabcorp.

Under the demerger, Tabcorp aims to retain its wagering, media and gaming businesses.  

If a demerger results, Tabcorp shareholders will receive shares in the lotteries and Keno business proportional to their existing holdings.

Tabcorp estimates the demerger process will incur between $225 million and $275 million in one-off separation costs. In addition, the company estimates $40 million to $45 million per year of ongoing incremental costs.

Following the news earlier this month, Tabcorp shares were sold off. Shares in the company were down more than 8% for the month, hitting a low for the month of $4.69.

At the time of writing, the Tabcorp share price has recovered slightly, currently trading at around $4.92. It is down 0.71% on yesterday’s closing price.

The post Expert expects demerger to benefit Tabcorp (ASX:TAH) share price appeared first on The Motley Fool Australia.

Should you invest $1,000 in Tabcorp right now?

Before you consider Tabcorp, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Tabcorp wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Here’s the latest on the Tabcorp (ASX:TAH) demerger/spin-off battle
The 3 ASX shares that top brokers just upgraded to “buy”

Why Australian Ethical, Clinuvel, Liontown Resources, & Tabcorp shares are dropping

Why A2 Milk, Airtasker, BetMakers, & Sydney Airport shares are storming higher

Why the BetMakers (ASX:BET) share price is up 5% at lunchtime

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

随时随地,交易世界!

移动APP平台,拥有 12 个市场的 50,000 多种全球上市证券(全球市值超过 70%),直接在您的 Android 或 iOS 设备上即可操作。

与独有的交易理念和投资分析工具相结合,帮助您在我们 12 个全球市场中的几乎所有金融工具上找到可操作的见解,从而帮助您优化交易策略。

推荐给您的朋友

向您的朋友推荐Monex并赠予他们免费使用我们交易工具的机会

我们尊重您的隐私,只会向您的朋友发送一封邮件 

与您的朋友分享

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!