Tabcorp Valuation

4772 Words Oct 30th, 2012 20 Pages
Executive Summary
On 18th October 2010, Tabcorp Holding Limited announced a demerger of its 4.3 billion casino and wagering business into two separate commercial entities: Echo and New Tabcorp. The term ‘New Tabcorp’ in this report refers to Tabcorp Holdings Limited after demerger and ‘Old Tabcorp’ refers to Tabcorp Holdings Limited before demerger.
The report offers evidences to prove that the Old Tabcorp was suffering a conglomerate discount and the demerger has a positive outcome. The first part gives a brief introduction of Tabcorp, including the background and demerger movements. The second part begins with a PEST analysis of the gambling industry in Australia which aims at drawing an image of the gambling industry environment. This
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The Interactive Gambling Act 2001 was amended in August 2011. It presented the implements of existing types of forbidden online gambling, and also checked the ability to eliminate harms that online gambling could bring to consumers.
Economic The Australian gambling market is remarkable in the world’s gambling industry. It has already been mature and showed a very strong growing momentum with 2.9% annually over the last five years, and it was predicted that the growth rate would be constant in a medium-term period. (Sudarsanam, 2011)There are four categories of gambling activities. Gaming is the largest type with the annual turnover over $10.2b, and other three types are Casino, wagering and lotteries, and the annual turnover was $3.2b, $2.6b and $2.1b respectively. (Sudarsanam, 2011)
Social Although gambling industry can bring more employment opportunities and offer diversified leisure activities for the public, it could also lead harms. ‘Problem Gambling’ is the main disadvantage that gambling produced, it may result in an increasing number of personal bankruptcy, suicide, crime and child welfare may be ignored and so on (Williams, Rehm & Stevens, 2011). Hence, the Australian Gaming Council formulated the Responsible Gaming regulation to conduct the gambling industry in Australia and reduce the existing and potential harms.
Technical As technology has been put into use and thanks to its

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