Tabcorp has announced several senior management team changes ahead of its demerger in which its lottery operations will be separated from gaming, wagering and media services. All of the changes were set out in the Demerger Booklet and the demerger is expected to finalize on June 1.
Some Employees Will Be Transferred to The Lottery Corporation
The first major change in Tabcorp’s senior management team concerns Adam Rytenskild, who will take over as chief executive and managing director. He will be replacing David Attenborough, who is set to retire.
Tabcorp’s non-executive director and chairman, Steven Gregg, will retire as well. He is set to be appointed to the same positions at The Lottery Corporation, which is the demerged lottery sector of the company. The new chairman of Tabcorp will be Bruce Akhurst; his appointment is effective on June 1.
The Lottery Corporation’s new chief financial officer will be Adam Newman, who has the same role at Tabcorp. He will be replaced by Daniel Renshaw, Anne Brenan and Harry Boon who will no longer be Tabcorp’s board members as they will be transferred to The Lottery Corporation.
Karen Stocks, Brett Chenoweth and Raelene Murphy will be Tabcorp’s new non-executive directors and finally, Patrick McGlinchey, who worked as co-company secretary, chief legal and risk officer will switch over to The Lottery Corporation. McGlinchey will have the same roles at The Lottery Corporation.
Details on the Tabcorp Demerger
Tabcorp announced at the end of March that the company is set to go through a demerger process if it’s approved by its shareholders. On May 12, 2022, shareholders agreed to demerge the company and create two wings – The Lottery Corporation and Tabcorp (Demerger). Gregg commented on the demerger and stated that this is an important milestone and it will set up both wings for future success.
On May 20, 2022, the demerger was greenlit by the Supreme Court of New South Wales. Both companies will operate omnichannel businesses. The Lottery Corporation is the leading lottery in Australia, while the Keno operator is one of the world’s greatest lottery performers and will operate well-known brands such as Oz Lotto and Powerball.
The goal of the demerger was to increase value for shareholders. Its goal is to allow both businesses to come up with a more focused profile and have a structure that is closer to their core operations. Right after the news of the demerger broke out, the company’s share prices dropped by 81%.
Tabcorp’s wish to demerge its keno and lottery operations was brought to life back in 2021 after a thorough review of its operations. One of the ideas that we discussed during the review was selling the businesses, but even though Entain and Apollo Global and Betmakers made their bids, the company ultimately decided to refuse them.