March 29 (Reuters) - Australian betting firm Tabcorp Holdings Ltd TAH.AX said on Monday it would begin a review of its businesses, after it found that proposals it recently received for its struggling wagering and media business did not offer sufficient value.
Tabcorp, which has been hit by coronavirus-induced closures of betting shops and cancellation of sporting events, said the review could include a potential sale of the wagering and media business to a third party or a possible demerger.
The company's latest annual report showed the unit generated revenue of A$2.08 billion ($1.59 billion) in 2020.
Ladbrokes (LON:LCL) owner Entain ENT.L offered in February to buy the unit, which is facing pressure from the shift to online betting from traditional retail betting, as the UK gambling company sought to expand its Australian presence. said it was also resuming a review of its gaming services business.
"Our clear objective is to ensure that we fully maximise the value of Tabcorp's gambling entertainment businesses," Chairman Steven Gregg said in a statement.
Tough conditions also forced the company to take measures recently to shore up its balance sheet, such as the sale of an 11.6% stake in smaller peer Jumbo Interactive Ltd.
($1 = 1.3099 Australian dollars)