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Share price at recent high - almost unaffected by market turmoil. However, IMHO, World Cup is a 1 off event every 4 years. The resilient share price is likely due to flight to defensive cash generating stocks.
Better values however lies in comparable but not direct competitor Tatts (TTS)
Not Vested
GG
http://www.smh.com.au/business/fifa-worl...167ch.html
FIFA World Cup lifts Tabcorp's revenues
Date
October 15, 2014
Jessica Gardner
Not only the Germans cheered at the end of the FIFA World Cup; The football tournament has been a boon for Tabcorp's wagering business.
Not only the Germans cheered at the end of the FIFA World Cup; The football tournament has been a boon for Tabcorp's wagering business.
Heavy betting on the final stages of the 2014 FIFA World Cup has boosted the performance of wagering giant Tabcorp, which has revealed a 6.6 per cent lift in first-quarter revenues.
Chief executive David Attenborough said Tabcorp had started the 2015 financial year well.
"In wagering, our investment in recent years in high-growth areas such as digital and fixed odds is paying off," Mr Attenborough said in a statement. "We are achieving strong growth in these areas and the business, as a whole, has positive momentum."
In the three months ended September 30 Tabcorp reported a 6.6 per cent rise in revenue to $537.4 million, compared to the same period last year.
The wagering division reported the strongest revenue growth of 8 per cent, rising to $415.9 million.
"Trading in [the first quarter] was supported by good performances over the period in both racing and sport, which included a successful end to the 2014 Soccer World Cup," the company said.
Betting revenue from Tabcorp's totalisator pools in Victoria ($142.6 million) and NSW ($159 million) fell 2.9 per cent and 3.2 per cent, respectively. However revenue from fixed odds products surged 32 per cent to $162.2 million.
Wagering turnover, which is a measure of total bets placed, rose 3.6 per cent to $3 billion. The value of bets placed digitally, via smartphones, computers and tablets, rose 21 per cent, while turnover from retail and the call centre both fell.
Tabcorp said mobile devices now account for 62 per cent of digital turnover.
In a move which could boost betting on overseas races, Tabcorp announced on Wednesday that its Victorian TAB customers who bet on a selection of racing in Hong Kong will be betting into the country's large betting pools. The move to 'co-mingle' pools on common bet types like win, place, quinella and trifecta, could make Hong Kong racing more attractive to local customers.
The Melbourne-based company's other divisions grew at a slower rate than wagering. Media and International revenue rose 4.8 per cent to $57.1 million. Gaming services revenue rose 2 per cent to $25.1 million. Keno revenue edged up 0.4 per cent to $54.3 million.
Tabcorp also announced the completion of its $105.5 million acquisition of Canberra-based wagering provider ACTTAB overnight.
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Odds on for in-play bets
Jessica Gardner
1844 words
13 Oct 2014
The Australian Financial Review
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English
Copyright 2014. Fairfax Media Management Pty Limited.
Gambling Moves to change online betting laws have left opponents aghast at apparent liberalisation tactics, while proponents say it's already happening and they want in on some of the $26 billion in digitally placed bets each year, writes Jessica Gardner.
When the Australian cricket team takes on England at the Melbourne Cricket Ground on day one of the World Cup next year, punters will have to place bets by 2.20pm sharp.
If Sportingbet, Sportsbet, Tabcorp and the James Packer-backed Betfair had their way, Australians would be able to bet on the game through the afternoon and into the night.
Parts of the industry are planning a push to change laws that stop online betting after matches have started.
The lobbying will be run by NSW state Liberal president Chris Downy, who heads the Australian Wagering Council.
Anti-gambling campaigners will be aghast at what they say is a push to liberalise betting laws. But gambling providers say there are two good reasons to allow what is known as online in-play betting.
First, local punters can already bet in-play by calling up a call centre or showing up at their local TAB outlet. The prohibition of online in-play is a relic of a law put in place in 2001, when the shift to digital betting had barely begun. These days, half of the $26 billion in bets placed each year come from computers, smartphones and tablets.Digital users already looking offshore
Second, local punters using their digital devices to back their team after the kick off, bounce or first ball are already seeking out overseas operators such as BetJack, Citibet and PuntingPal.
Tom Waterhouse, the scion of the racing family who caused a major uproar last year when he splashed the teal and grey logo of his eponymous online bookmaker across rugby league telecasts, has run the local operations of British wagering giant William Hill for the past three months.
The 32-year-old says that foreign unregulated bookies can smell an opportunity and are targeting Australian punters for in-play betting.
"The thing that is alarming for us, and the reason why we're keen to push for [regulatory change], is there has been a transformation of these overseas bookmakers," he says. "You have websites that look like William Hill websites or our competitors' websites."
Waterhouse is gesturing from the head of William Hill's boardroom table, on level 30 of a Sydney office tower. In a dark blue suit and sharp white shirt he is in full charm and persuasion mode. But he dials back the TV advertising-grade smile to emphasise what he sees as the gravity of the situation. "We're not on a level playing field when it comes to the product offering," he says. "We're seeing mass leakage of money going offshore."
In 2010 the Productivity Commission estimated that $1 billion in gambling revenue flows to illegal overseas operators each year. If the foreign operators have ramped up their targeting of Aussie punters that number may have increased.Money flow undermines sports integrity
The industry warns that the flow of money will undermine sports integrity, consumer protection and harm minimisation. It also has the potential to put their own profits at risk.
Waterhouse says the websites offer the same betting products as the three brands under his watch: Sportingbet, Centrebet and TomWaterhouse.com. The risk is that if punters go with the foreign rival for in-play betting they may take their other bets there too. "The Cricket World Cup is a great example," he says. "The bulk of turnover is going to be with offshore operators."
Allowing in-play betting is a significant opportunity for these businesses.
Killian Murphy was previously an analyst at Irish firm Goodbody Stockbrokers where he followed wagering giants such as William Hill, Paddy Power and Ladbrokes. For the past two years, as an analyst at CIMB, Murphy has watched the rising influence of these giants in Australia. "[In-play betting] is about 50 per cent of their sports betting business online in the UK," he says of William Hill and Paddy Power.Catalyst would benefit some operators
Australia's online betting market is growing at about 15 per cent a year. If online in-play betting was legalised, Murphy says it would not significantly grow the overall wagering pie but would accelerate the shift from retail betting to online.
Such a catalyst would benefit operators such as Paddy Power, which owns Sportsbet in Australia, and William Hill ahead of local incumbents such as Tabcorp and Tatts Group, he says. The anticipation of such a change is one of the reasons the Brits have spent hundreds of millions buying up local operators to get a foothold in Australia.
"They have the infrastructure here," he says. "They have all the technology here. They're just waiting for change to happen."
So it is understandable that online-only bookies are embarking on a big lobbying push. But it comes at a time that they are being buffeted from a number of directions by politicians, ex-politicians and rivals that are motivated to stop their rampant growth.
Former Victorian Premier Jeff Kennett is an outspoken critic of the operators, which are often referred to as corporate bookmakers to differentiate them from TAB agencies such as Tabcorp and Tatts.
"My objections are firstly moral," he says. Wagering advertising should be banned
"I don't like corporate bookmakers having unfettered opportunity to create a nation of gamblers." Kennett says wagering advertising should be banned.
"No government has the balls to stand up and put on the same restrictions that apply to poker machines and casinos," he says. "Yet corporate bookmakers, they're in your face the whole time. It's appalling."
Kennett says the bookmakers do not pay enough to state racing bodies. The organisations, such as Racing NSW and Racing Victoria, charge the bookies product fees, also known as race fields fees, which are often based on a percentage of turnover.
Tabcorp and Tatts pay more to the racing bodies because they hold monopoly licences to run the state's retail networks in TAB agencies and in pubs and clubs.
The popularity of online bookmakers has shifted wagering dollars away from Tabcorp and Tatts, which has reduced funding going to racing bodies.
"Corporate bookmaking is right now destroying Australian racing," Kennett says.
Spying their own opportunity, the Nationals will push for a new online wagering tax and redirect the proceeds to regional infrastructure. The plan became Nationals Party policy after Victorian Senator Bridget McKenzie proposed it at a federal council meeting in September.
Hitting online bookies with higher rates of tax is something that Tabcorp chief executive David Attenborough has been advocating for, for some time. At a recent speech to a Melbourne business lunch, Attenborough said legalised gambling should generate profit for operators, but also for government and community.
Attenborough estimates that corporate bookmakers paid $2.7 million in state wagering taxes and a further $90 million in racing industry contributions in 2014. Tabcorp paid $735 million to the Australian racing industry in 2014.Deal looks unlikely
The online bookies argue that Tabcorp's greater contribution comes from its monopoly retail licenses and that they are abiding by the product fee and licence fees put in place by the states.
Despite the wagering industry's interest in sitting down with politicians to nut out their own proposal, embracing a deal that includes paying more tax looks unlikely.
"That's not relevant to this," the Australian Wagering Council's Chris Downy says. "This idea that for some reason online operators should pay some sort of wagering tax, it's a furphy."
Waterhouse says a push for bookies to pay more tax is based on a "misconception" that companies such as William Hill don't pay their way.
"We pay $40 million in tax," he says. "We pay more in tax than we make in profit."
What Waterhouse is referring to includes standard contributions such as company and payroll tax, and the GST. In terms of tax to the Northern Territory, where the three William Hill ventures are licensed, each brand's annual wagering fee has just recently risen from $267,000 to $550,000.
In NSW, online bookies pay no license fee. With regards to racing or sports contributions, all bookies pay the same product fees, which vary from state to state. In NSW, for example, the fee is 1.5 per cent of turnover.
"I definitely think the industry pays to racing and to sporting bodies; we pay a significant share," Waterhouse says.
The idea of "jurisdiction shopping" to find the lowest fee regime is misguided he says. In the early 2000s the territory cut its turnover tax on bookies from 1.5 per cent of turnover to 0.33 per cent. The NT government allowed bookmakers to take novelty bets on things such as elections and interest rates, and promote bets based on prices offered by the TABs and their totalisator pools.
This lured them to the top end but now, Waterhouse says, there is less benefit as taxes paid to the sports and racing bodies are consistent across state borders.Nationals 'see something, tax it'
Kennett may agree that bookies should pay more to the racing bodies, but he does not think that a new tax is the way to ensure that. "I think with due respect their idea is short-sighted," he says.
"What the National Party is doing, it's old world – if they see something, tax it."
The former premier would rather the online bookies were stamped out. "Australia would be better off without corporate bookmakers," he says. But in Kennett's strong views there is a lesson for Senator McKenzie, Waterhouse and his industry.
Any debate about online gambling – whether it is the proposition of a new tax or opening up of in-play betting – has the potential to polarise opinion.
And it is why, privately, many in the gambling industry don't expect imminent change on either push. Prime Minister Tony Abbott and his advisers such as chief of staff Peta Credlin "don't want the words Coalition and gambling in the same sentence," one wagering company source said.
CIMB's Murphy agrees. When he was watching the first foray of Paddy Power into Australia, Murphy was sure the move was a play on the future of in-play betting.
"As an outsider looking into Australia – as I was, when I was Ireland – I was always of the opinion that live betting would be introduced," he says.
"But having lived in Australia for two years . . . I don't think that there is political will to be driving this agenda."
No government has the balls to stand up and put on the same restrictions that apply to poker machines and casinos, yet corporate bookmakers are in your face the whole time. Jeff Kennett, former Victorian premier
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Nationals push to tax online bookies
Jessica Gardner
663 words
13 Oct 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.
The National Party will push for taxing online bookmakers and earmarking the funds for regional infrastructure.
Senator Bridget McKenzie will formalise the party's position in a submission to the federal government's white paper on tax reform, before starting talks with the Liberal Party.
She has spearheaded a push for a national tax on online betting companies, many of which are now run by foreign wagering giants like William Hill, Paddy Power and Ladbrokes.
The Nationals' position on what, would, in effect, be a federal takeover of state wagering taxes is not fully formed.
Senator McKenzie declined to comment. The party's national council passed a motion to support "tax reform whereby online wagering is regulated by the Commonwealth and a proportion of the taxation gains be directed to regional growth projects".
The motion notes that online gambling "is the fastest growing form of gambling", and that problem gambling was prevalent among disadvantaged communities, including regional areas.
The plan is likely to face opposition from within the Coalition's senior party, which will be keen to keep away from the vexed issue of gambling, industry sources said.
David Attenborough, the chief executive of the country's biggest wagering operator Tabcorp, was not available to comment on The Nationals' policy.
However Mr Attenborough has been a vocal advocate for greater taxation of his rivals, the online-only bookmakers.
At a recent speech to a Melbourne business lunch, Mr Attenborough said legalised gambling should generate profit for operators, but also for government and community.
Mr Attenborough estimated that corporate bookmakers paid $2.7 million in state wagering taxes and a further $90 million in racing industry contributions in 2014. Tabcorp paid $735 million to the Australian racing industry in 2014.
The online bookies argue that Tabcorp's greater contribution is because it runs monopoly retail licences in Victoria and NSW. Similarly Tatts Group is the monopoly retail wagering provider in Queensland, South Australia, Tasmania and the Northern Territory.
The bookmakers say they abide by the licence fees that are charged by the states. For example, bookies in the Northern Territory pay a wagering license fee of $550,000 a year.NSW lacks wagering licence fee
In NSW there is no wagering licence fee. The bookies then pay various fees directly to racing and sports bodies, which are set by those organisations and are charged irrespective of what state or territory an outfit is licensed in. In NSW the charge, sometimes called "race fields" fees, is the equivalent of 1.5 per cent of all bets an operator take on races from the state.
"Online bookmakers pay the same fees, the same taxes as the traditional betting outlets with the exception of one thing," Australian Wagering Council chief executive Chris Downy said. "Traditional TAB companies pay [more] tax because they are a monopoly."
Wagering is regulated at a state level, but online gambling is a federal issue.
The Interactive Gambling Act falls within the remit of Communications Minister Malcolm Turnbull, who was on leave and unable to comment. The department said there was "currently no proposal" for a federal tax. "Online wagering is regulated by the States and Territories. Any proposal to create such a tax would require consideration by a range of Government portfolios."
Former premier Jeff Kennett, a strident critic of online bookies, did not support a national tax. "I think with due respect their idea is short-sighted," Mr Kennett said.
Instead he wants advertising by corporate bookmakers banned and their contributions to the racing industry increased.
"No government has the balls to stand up and put on the same restrictions that apply to poker machines and casinos," he said, regarding advertising limits. "Yet corporate bookmakers, they're in the face the whole time. It's appalling."
Key points The Nationals want online wagering to be subject to a federal tax. Online bookmakers say they abide by the fees charged by the states.
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Bets group on faster track following rough ride
Trevor Hoey
330 words
22 Oct 2014
The Australian Financial Review
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Copyright 2014. Fairfax Media Management Pty Limited.
Normally viewed as a fairly defensive stock, Tabcorp Holdings wasn't spared in the recent selloff with its shares falling from $3.69 at the start of October to an intraday low of $3.42 last week, a decline of about 7.5 per cent.
However, a positive first quarter trading update delivered towards the end of the week saw the stock rebound, and on Friday it hit an intraday high of $3.76, a 10 per cent bounce.
Analysts at Deutsche Bank noted a number of positive factors that had emerged in the three months to September 30. Revenue growth of 6.6 per cent was well above its estimate of 3.4 per cent.
The broker highlighted that this was driven by the core wagering division which generated growth of 8 per cent against Deutsche Bank's expectations of 3.3 per cent.
Importantly, the group continues to benefit from strong growth in fixed-odds revenue and digital turnover, which were up by 32 per cent and 21 per cent respectively.
The broker subsequently upgraded earnings per share forecasts for 2014-15 and 2015-16 by 3.8 per cent and 2.9 per cent respectively and increased the 12-month share price target by 5.4 per cent, from $3.70 to $3.90.
Tabcorp has traditionally been well supported by yield investors and Deutsche Bank forecasts a dividend of 20¢ in 2014-15, implying a return of nearly 5.2 per cent relative to the price target.
By contrast, CIMB believes external headwinds such as rising race fields, shifting consumer behaviour away from the core TAB offering, and aggressive competition will make it difficult for Tabcorp to meet its targets.
The broker has a reduce recommendation on the stock with a 12-month price target of $2.85, implying downside of more than 20 per cent following last week's share price surge.
Trevor Hoey
Fairfax Media Management Pty Limited
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Tabcorp well-placed for FY15
OCTOBER 28, 2014 9:45AM
Tabcorp says it is well placed for fiscal 2015 after a strong first quarter, and with plans to capitalise on the opportunities available to the business.
Tabcorp managing director and chief executive David Attenborough told shareholders at the company's annual general meeting the group had strategic priorities for its wagering, keno and media and international operations, on the back of a 6.6 per cent lift in first-quarter revenues.
He said the group would look to further integrate its retail and digital channels in wagering, while also focusing on product expansion and embedding its recently finalised purchase of ACTTAB into the business.
In keno, Mr Attenborough said the group would establish jackpot pooling, to bring more customers into the game as part of its plan to drive improved performance in that business.
Meanwhile, the focus for Tabcorp's media and international operations will be concluding media rights negotiations and expanding international co-mingling.
"At the same time we will maintain expense discipline and remain committed to delivering improved returns," he said.
Tabcorp chairman Paula Dwyer also called on the federal government to ban unlicensed offshore operators from taking bets from Australian residents.
Ms Dwyer said Tabcorp was concerned about the rise of unlicensed offshore betting on Australian racing and sport. And, France had already introduced a ban, while changes were underway in the United Kingdom.
"Tabcorp's view is that a similarly powerful response is needed in Australia, and we are in active dialogue with the federal government on this issue," Ms Dwyer told the meeting.
Tabcorp estimates that up to 14 per cent of betting by Australian-based customers is done through operators not licensed in Australia.
Ms Dwyer said that because unlicensed offshore operators were not subject to Australian regulations, consumers risked not being adequately protected.
"Revenue that would otherwise be returned to the Australian racing industry, and our governments for investment into communities and social infrastructure, is instead going to unlicensed offshore operators," she added.
"It is only right and fair for consumers, sporting codes and taxpayers that all operators are subject to the same licence obligations."
Ms Dwyer also called for the harmonisation of licence conditions across all states and territories for the racing industry.
And she urged reform on the difference paid in wagering taxes by various operators.
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Tabcorp wants ban on unlicensed offshore betting operators
AAP OCTOBER 28, 2014 9:56AM
Tabcorp CEO David Attenborough, looking forward to a successful Spring Racing Carnival Source: News Corp Australia
GAMING group Tabcorp has appealed for a clampdown on unlicensed offshore betting operators, as it reported a 6.6 per cent rise in first quarter revenue.
Chief executive David Attenborough says revenues rose to $537.4 million in the September quarter.
“We’re now looking forward to a successful Spring Racing Carnival and an exciting Melbourne Cup week, beginning with Derby Day this Saturday,” he said in a speech to shareholders at the company’s annual general meeting.
Tabcorp (TAH) chairman Paula Dwyer also called on the federal government to ban unlicensed offshore operators from taking bets from Australian residents.
Ms Dwyer said Tabcorp was concerned about the rise of unlicensed offshore betting on Australian racing and sport. France had already introduced a ban, while changes were underway in the United Kingdom, she said.
“Tabcorp’s view is that a similarly powerful response is needed in Australia, and we are in active dialogue with the federal government on this issue,” Ms Dwyer told the meeting.
Tabcorp estimates that up to 14 per cent of betting by Australian-based customers is through operators not licensed in Australia.
Ms Dwyer said that because unlicensed offshore operators were not subject to Australian regulations, consumers risked not being adequately protected.
“Revenue that would otherwise be returned to the Australian racing industry, and our governments for investment into communities and social infrastructure, is instead going to unlicensed offshore operators,” she added.
“It is only right and fair for consumers, sporting codes and taxpayers that all operators are subject to the same licence obligations.”
Ms Dwyer also called for the harmonisation of licence conditions across all states and territories for the racing industry.
And she urged reform on the difference paid in wagering taxes by various operators.
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Ellerston Capital takes 5pc stake in Tabcorp
BUSINESS SPECTATOR OCTOBER 29, 2014 11:19AM
PRIVATE fund Ellerston Capital has become a substantial shareholder in Tabcorp Holdings, the gaming group has disclosed.
Tabcorp (TAH) said this morning it has become aware that Ellerston and its associates have acquired a relevant interest in 38.77 million ordinary shares, which represents a 5.06 per cent stake in the group’s issued capital.
Well-known investment manager and long-time adviser to the Packer family, Ashok Jacob, serves as the chairman of Ellerston Capital. The company is 75 per cent owned by its employees, while Crown chairman James Packer also holds a 25 per cent stake.
Ellerston was established in 2004 and specialises in equity strategies. It has more than $3 billion in funds under management.
As part of Tabcorp’s constitution, but also due to an agreement with the State of Queensland, an individual is not permitted to possess voting power in the company that exceeds 10 per cent.
In recent months, Mr Jacob has been touring the country looking to drum up support for his new Ellerston Global Investments offering, which aims to raise up to $75 million.
Yesterday, at its annual general meeting, Tabcorp chairman Paula Dwyer called on the federal government to ban unlicensed offshore operators from taking bets from Australian residents.
Ms Dwyer said Tabcorp was concerned about the rise of unlicensed offshore betting on Australian racing and sport. France has already introduced a ban, while changes are underway in the United Kingdom.
“Tabcorp’s view is that a similarly powerful response is needed in Australia, and we are in active dialogue with the federal government on this issue,” Ms Dwyer told shareholders.
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Govt group to tackle illegal betting
AAP OCTOBER 29, 2014 8:30PM
A national working group will be set up to stamp out illegal offshore betting on racing and sport in Australia.
Australian punters spend hundreds of millions of dollars with illegal offshore bookies, but those bookies pay no product fees and deny revenue streams to governments, the racing industry and sporting organisations.
Federal Social Services Minister Kevin Andrews and Victorian Premier Denis Napthine on Wednesday announced moves to crack down on the illegitimate industry.
"There are significant numbers of illegitimate offshore operators already targeting Australian racing and sport, and it is vital that an effective regulatory regime be introduced to address the serious integrity and revenue risks that they pose," Mr Andrews said in a statement.
"It is also important to discourage any Australian-based operators being tempted to relocate offshore in order to avoid the obligations to racing and sporting bodies that they face under existing Australian laws."
Dr Napthine said wagering revenue helped fund racing and sports facilities, and prizemoney.
Who exactly will be in the working group is yet to be determined, but it will include representatives from the racing industry, professional sports and wagering companies.
It's expected to start work later this year and provide recommendations to the federal government through its Gambling Industry Advisory Council in 2015.
The move comes a day after the chair of wagering group Tabcorp, Paula Dwyer, urged the government to create a more level playing field in relation to unlicensed foreign companies taking bets from Australian residents.
Ms Dwyer said that as much as 14 per cent of betting by Australian-based customers was conducted with operators not licensed in Australia.
She said the fact that these foreign operators were not regulated to Australian standards posed significant risks to consumer protection and to the integrity of sport and racing.
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Ashok Jacob’s newly listed company has some big backers
THE AUSTRALIAN OCTOBER 30, 2014 12:00AM
Damon Kitney
Victorian Business Editor
Melbourne
FORMER Toll Holdings boss Paul Little, wotif.com founder Robert Brice and Perth engineering and construction magnate John Rubino have emerged as the biggest backers of Ashok Jacob’s newly listed investment company Ellerston Global Investments.
Ellerston debuted on the Australian Securities Exchange last week, marking a return of the name to the ASX after a five-year absence. The units, which were sold at a $1 each, closed at $1.07.
Mr Jacob’s privately held $3 billion Ellerston Capital, which has a cornerstone stake in Ellerston Global Investments, yesterday emerged with a 5 per cent stake in gaming giant Tabcorp Holdings. A substantial shareholding notice revealed Ellerston Capital had 38.8 million shares worth $156.2 million.
It is understood the Tabcorp stake is viewed as an opportunistic investment by Ellerston and not related to any corporate play. Indeed, under Tabcorp’s structure, single shareholders are prevented from holding more than a 10 per cent stake in the company.
Ellerston Capital is also believed to hold a stake of just under 5 per cent in poker machine manufacturer Aristocrat.
The top 20 shareholding list for Ellerston Global Investments reveals that Mr Brice’s private vehicle RAC and JD Brice Superannuation has emerged with a 6.7 per cent stake. Mr Brice founded travel website wotif.com with entrepreneur Graeme Wood. Wotif is now under a $703m takeover bid by global travel giant Expedia.
Mr Little, chairman of Essendon Football Club, has a $3m stake in the fund.
John Rubino, founder and chairman of engineering and construction contractor Monadelphous, has emerged with a 4 per cent stake in Ellerston under his vehicle Rubi Holdings.
Mr Jacob has been a long supporter of Monadelphous, both when he worked with the Pratt family at their investment arm Thorney Investments and after he joined Ellerston Capital, which has long had an association with the Packer family. Ellerston Capital is still 25 per cent owned by James Packer but is independently run by Mr Jacob and his investment team.
Another significant shareholder in the newly listed Ellerston entity is Mutual Trust, the family office of Melbourne’s wealthy Baillieu family.
(29-10-2014, 01:56 PM)greengiraffe Wrote: Ellerston Capital takes 5pc stake in Tabcorp
BUSINESS SPECTATOR OCTOBER 29, 2014 11:19AM
PRIVATE fund Ellerston Capital has become a substantial shareholder in Tabcorp Holdings, the gaming group has disclosed.
Tabcorp (TAH) said this morning it has become aware that Ellerston and its associates have acquired a relevant interest in 38.77 million ordinary shares, which represents a 5.06 per cent stake in the group’s issued capital.
Well-known investment manager and long-time adviser to the Packer family, Ashok Jacob, serves as the chairman of Ellerston Capital. The company is 75 per cent owned by its employees, while Crown chairman James Packer also holds a 25 per cent stake.
Ellerston was established in 2004 and specialises in equity strategies. It has more than $3 billion in funds under management.
As part of Tabcorp’s constitution, but also due to an agreement with the State of Queensland, an individual is not permitted to possess voting power in the company that exceeds 10 per cent.
In recent months, Mr Jacob has been touring the country looking to drum up support for his new Ellerston Global Investments offering, which aims to raise up to $75 million.
Yesterday, at its annual general meeting, Tabcorp chairman Paula Dwyer called on the federal government to ban unlicensed offshore operators from taking bets from Australian residents.
Ms Dwyer said Tabcorp was concerned about the rise of unlicensed offshore betting on Australian racing and sport. France has already introduced a ban, while changes are underway in the United Kingdom.
“Tabcorp’s view is that a similarly powerful response is needed in Australia, and we are in active dialogue with the federal government on this issue,” Ms Dwyer told shareholders.
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