Australian operator Tabcorp is to break in two, dividing its casino business from its wagering operations.
The demerger will create two companies that will be listed on the stock market in an effort to raise additional funds to refurbish its casino properties. The company also announced a AU$430m capital raising to enable it to invest more than AU$1bn in its casinos.
John Story, Tabcorp’s chairman, said the company’s board had been considering making such a move for the past three years.
"These are fundamentally two very different businesses and it is right that each should pursue its own destiny," he said.
Analyist have suggested the move may leave the company open to acquisition as its casino arm, which includes Star City and Jupiters casinos, is reportedly coveted by rival operator Crown.
