SYDNEY Oct 19 Australia's Tabcorp Holdings
said it agreed to a A$6.36 billion ($4.87 billion)
takeover of Tatts Group to create a A$10.44 billion
betting industry giant that could help fend off popular online
Tabcorp, the smaller of the two companies by market value,
will offer 0.8 Tabcorp share plus A$0.425 in cash for each Tatts
share. That implies a value of A$4.34, representing a 20.8
percent premium to the most recent Tatts closing price of A$3.59
Australia's two largest non-casino gambling firms are
struggling to cope with mounting competition from online betting
agencies that have taken off since the deregulation of gambling
licences in 2012, and both reported profit falls in August.
The deal, which has been recommended by both boards, remains
subject to regulatory approval and a Tatts shareholder vote.
($1 = 1.3050 Australian dollars)
(Reporting by Jamie Freed and Tom Westbrook; Editing by Peter