Tabcorp (TAH) is a diversified entertainment group specialising in gambling and a variety of other entertainment products.
While TAH offers wagering, gaming, hospitality and media activities across Australia, it is renowned for its customer brands, which include Star City and Jupiters casinos, TAB, Keno, Tabaret and TAB Sportsbet.
TAH has been of the hot stocks in recent months, surging from a low of $6.18 in mid-August to be currently trading around $7.10.
On 18 October, TAH announced that it plans to demerge its casino and gaming operations, and launch a $430 million capital raising.
The proceeds of the capital raising will be used to fund growth initiatives and ensure both entities have appropriate capital structures.
TAH stated that the demerger is expected to be completed by 1 July, 2011, subject to regulatory approvals.
In stock market trading, TAH shares remained in a trading halt on the day of the announcement.