Morningstar - Tatts Group Limited Tabcorp and Tatts Merger Edges One Step Closer to the Finish Line

Report

Morningstar

Ravi Reddy

EUR 101.80 For Business Accounts Only

Tabcorp and Tatts Merger Edges One Step Closer to the Finish Line

We remain confident the proposed Tabcorp and Tatts merger will proceed following the statement of issue, or SOI, released by the Australian Competition and Consumer Commission, or ACCC. Our fair value estimates for narrow moat rated Tabcorp and Tatts are unchanged at AUD 3.80 and AUD 4.00 per share, respectively.
Not surprisingly, the ACCC highlighted limited competitive overlap between the retail wagering operations of the merger parties. Tabcorp is the monopoly provider in New South Wales, Vic...

09/03/2017 15 EN

Underlying

Tatts Group Limited

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AU000000TTS5 Australia

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

Ravi Reddy

Other Reports on these Companies

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Tatts Delivers a Solid Start to Fiscal 2018, Albeit Cycling Against a Weak Comparable

Tatts is off to a strong start to fiscal 2018 with first-quarter revenue and EBITDA increasing by 7% and 10%, respectively. The lotteries division was the key driver of the improvement, despite cycling against a weak comparable. Despite tracking marginally ahead of our expectations, the impact on our intrinsic value is negligible. We maintain our Tatts and Tabcorp fair value estimates of AUD 3.80 and AUD 4.20 per share, respectively. At current prices, we believe shares in both companies are sli...

EUR 101.80

November 28, 2017 November 28, 2017 15 EN

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Corporate Action: Tatts Shareholders Should Vote in Favour of Merger with Tabcorp

The Australian Competition Tribunal greenlit the merger between Tabcorp and Tatts, albeit for the second time. The only condition is Tabcorp must divest its Odyssey Gaming Services business in Queensland. As previously indicated, Tabcorp has obtained all necessary State pre-implementation approvals. We believe the merger is most likely to proceed, and the only outstanding item is the shareholder vote. We maintain our narrow moat ratings for both companies, and we expect their competitive positio...

EUR 101.80

November 21, 2017 November 21, 2017 14 EN

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Another Spanner Thrown in the Works for Merger Between Tabcorp and Tatts

Another spanner has been thrown into the works for the Tabcorp and Tatts merger, as the federal court has set aside the approval granted by the Australian Competition Tribunal. Contrary to Tabcorp's view, we believe the best-case scenario for both narrow-moat-rated groups would be a delay, while the worst case is the deal falling through. Consequently, we have assessed the impact on our fair value estimates for both firms in the event the takeover does not proceed. In this scenario, our fair val...

EUR 101.80

September 21, 2017 September 21, 2017 14 EN

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Tabcorp and Tatts Merger Edges One Step Closer to the Finish Line

Tatts Delivers a Solid Start to Fiscal 2018, Albeit Cycling Against a Weak Comparable

Corporate Action: Tatts Shareholders Should Vote in Favour of Merger with Tabcorp

Another Spanner Thrown in the Works for Merger Between Tabcorp and Tatts

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Sasol Provides Full-Year Production Update

Sasol Provides Full-Year Production Update

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