This is a brief part of an article late night on 'The Australian' online pages re Tabcorp (TAH), which in another thread on HC was in the news for itself recently divesting almost $100 million in its JIN stake:
(the full text will be in 'The Weekend Australian', always a great read, of Saturday 7-Sunday 8 November 2020):
Large Tabcorp shareholders have demanded management consider a demerger of its lotteries business or risk private equity doing the job instead and shareholders miss out on the upside of a division that could be worth more than $10bn on its own.
The lotteries division is described as a 'powerhouse' with someone claiming it has an implied value of $9.5 to $10.8 billion, more than TAH including its wagering and lotteries divisions is worth as of today.
(By comparison, JIN's capitalisation today at COB was $728.78 million).
Am I correct that TAH's lotteries would be too big a fish for JIN to fry given the huge differences in alleged enterprise values?
Or should I have my chequebook ready for a capital raising?
JIN Price at posting:
$11.67 Sentiment: Hold Disclosure: Held
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(20min delay)