UPDATE 1-Australia’s Tabcorp to spin-off Lotteries & Keno business

(Adds background on review, M&A interest)

July 5 (Reuters) – Australia’s Tabcorp Holdings Ltd said on Monday it would spin off its Lotteries & Keno business into a listed entity, drawing an end to a company-wide review it undertook earlier this year as interest built for a separate unit.

The demerger will create two listed-companies, Lotteries & Keno (L&K) and Wagering & Media (W&M) – the latter being the target of buyout offers from Entain PLC, Apollo Global Management Inc and Betmakers Technology Group Ltd .

In late March, Tabcorp undertook a review that looked at potentially spinning off either business or selling the W&M arm.

The company said it considered proposals to sell the Wagering & Media business, and “concluded that a demerger of Lotteries & Keno is the optimal, and most certain, path to maximise the value of both businesses for Tabcorp shareholders.”

Tabcorp said selling the W&M arm, which was hit hard by the halt to sporting events and closure…

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