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.

 

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

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

Cannon-Brookes launches shareholder campaign against AGL demerger

Cannon-Brookes launches shareholder campaign against AGL demerger

Australian billionaire and Atlassian co-founder Mike Cannon-Brookes...

Action film The Fall Guy starring Ryan Gosling to inject $244m into the Australian economy

Action film The Fall Guy starring Ryan Gosling to inject $244m into the Australian economy

The Australian economy is expected to receive a $244 million inject...

CVC finds Brambles takeover un-pallet-able, exits talks

CVC finds Brambles takeover un-pallet-able, exits talks

Just one day after reusable pallet, crate and container company Bra...

Brambles confirms takeover talks with CVC Capital Partners

Brambles confirms takeover talks with CVC Capital Partners

In a short statement posted to the ASX this morning, Australian log...