Tatts snaps up NSW Lotteries for $850m
NSW Government announced this morning that Tatts Group Limited (TTS) was the successful bidder for NSW Lotteries for a price of $850 million. The Government reportedly received almost $417 million from NSW Lotteries last year alone, including $306 million in royalties, almost $56 million in profit, and another $56 million in dividends.
Meanwhile, under the terms of the agreement, NSW Lotteries Corporation will transfer around $160 million of cash and other assets to the NSW government before completion of the deal, a separate statement said.
In the news wires, NSW Treasurer Eric Roozendaal said this would bring the total value of the deal to over $1 billion.
"This is a great outcome for the families and taxpayers of NSW," Mr Roozendaal said.
Meanwhile, Tatts chief executive, Dick McIlwain, said the company’s acquisition of NSW Lotteries was a logical and natural expansion of its lottery businesses in Queensland, Victoria, Tasmania, Northern Territory and the ACT.
”Importantly, the NSW Lotteries acquisition presents the opportunity to increase Tatts’ earnings per share before expected one off integration costs of $14M spread over a three year period,” the company said.
Tatts has been given a 40-year lease on running the lotteries, with the transaction expected to complete at the end of March.
Tatts Group shares were down 19c, or 7.7% to $2.29.
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