Tatts Group rejects Pacific Consortium offer

Australian lotteries giant Tatts Group Ltd. has rejected the A$7.3 billion (US$5.5 billion) offer from the Pacific Consortium for its acquisition.

Earlier in December, a consortium of four financial investors, called the Pacific Consortium offered up to A$7.3 billion for the acquisition of Australian lottery operator Tatts Group.

The Pacific Consortium comprises First State Superannuation Scheme, Morgan Stanley Infrastructure Inc., which is an adviser to and manager of North Haven Infrastructure Partners II LP, an affiliate of Kohlberg Kravis Roberts & Co L.P. and Macquarie Corporate Holdings Pty Limited.

The proposal from the Pacific Consortium offered A$3.40 per share cash for the lotteries business and shares in a spinoff wagering company the consortium values at A$1 to A$1.60 a share.

However, in a filing to the Australian Stock Exchange on December 23, Tatts Group said it concluded that it did not find the Pacific Consortium’s proposal to be superior to the proposed Tabcorp merger.

“The proposal from the Pacific Consortium offers A$3.40 per share cash for the lotteries business and shares in a spinoff wagering company the consortium values at A$1 to A$1.60 a share, according to Tatts in a filing,” said the company in its filing.

In October, Tabcorp agreed to acquire the lottery operator in a A$11.3 billion ($8.7 billion) merger that would see the formation of a gambling giant in Australia.