TATTS DIVESTS UK SLOTS BUSINESS FOR $210M

TATTS DIVESTS UK SLOTS BUSINESS FOR $210M

TATTS Group (ASX:TTS) has divested its 'struggling' UK-based slots business for $210 million in the wake of Britain voting to withdraw from the European Union.

The Brisbane-based wagering company sold Talarius Limited to gaming outfit Novomatic UK, which is expected to result in an accounting loss of $50 million.

Novomatic will gain the economic contribution of the business from March 19 this year under the terms of the sale.

Talarius, which operates gaming machines in high street and motorway venues across the UK, contributed less than 2 per cent of Tatts' earnings in FY15 at $6.2 million.

Tatts CEO and managing director Robbie Cooke (pictured) says the funds will be used to repay the company's UK debt facilities.

"The sale of Talarius follows three years of intense effort to improve the performance of a business that struggled since its acquisition by Tatts back in 2008," Cooke says.

"Our patience in repositioning the business has seen it become a very attractive asset in a highly competitive gaming segment in the UK and has provided a path to maximising shareholder value.

"As a large international gaming group, Novomatic is the logical acquirer of the business - its established UK position, deep industry knowledge and synergy opportunities makes it a natural owner of the asset.

"I am pleased to say this step completes the transformation of Tatts' gaming unit to a pure B2B business, entirely focused on providing gaming monitoring and other services to gaming operators."

Tatts has updated its profit forecast to be in between $255 and $265 million following the sale of Talarius.

Statutory profits will also be impacted by an $18.6 million tax interest charge relating to the Victorian government's successful appeal regarding the company's pokies license in High Court, as well as $4 million in legal fees.

 

Get our daily business news

Sign up to our free email news updates.

Please tick to verify that you are not a robot

 

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Make smarter investing decisions with an Earnings Calendar
Partner Content
With the US reporting season just around the corner, it pays to know when exactly to gi...
moomoo
Advertisement

Related Stories

Afterpay owner Block Inc shares slammed following savage short seller report

Afterpay owner Block Inc shares slammed following savage short seller report

Shares in NASDAQ-listed Block Inc. (NASDAQ: SQ) - formerly Square -...

Aged care operator Estia Health receives $775m takeover offer from Bain Capital

Aged care operator Estia Health receives $775m takeover offer from Bain Capital

One of Australia’s largest residential aged care providers, E...

Invest Inya Farmer turns a shopping list of farm produce into a new investment class

Invest Inya Farmer turns a shopping list of farm produce into a new investment class

Victorian-based startup Invest Inya Farmer (IIF), armed with $1.1 m...

Board exodus at Nitro software as five directors depart, Potentia takes over

Board exodus at Nitro software as five directors depart, Potentia takes over

A Melbourne-founded software group that took on Adobe in the pdf ma...