Private equity group Pacific Consortium is back in the hunt for lotteries and wagering firm Tatts Group with a revised takeover offer worth more than $6 billion.

The $4.21 per share offer values Tatts, which is currently subject to a merger proposal from wagering giant Tabcorp, at about $6.18 billion.

The cash consideration may include a fully franked special dividend of up to 25 cents per Tatts share to be paid immediately prior to the implementation of the proposed transaction.

Shares in Tatts were boosted by the new approach, though cooled to close just one cent higher at $4.36.

Tatts said it is assessing the new proposal from Pacific Consortium and advised shareholders not to take any action, or assume the proposal will result in an offer or sale.

Tatts continues to recommend the merger proposal with Tabcorp in the absence of a superior proposal, and subject to an independent expert’s assessment.

Tatts in December rejected a cash-and-scrip takeover proposal from Pacific Consortium which valued Tatts shares at $4.40 to $5.00.

The cash-and-scrip offer comprised $3.40 in cash, and one share in Tatts’ wagering and gaming businesses – referred to as ‘”Wagering & Gaming Co” – which Pacific Consortium intended to separate from Tatts’ lottery business should the takeover bid succeed.

Tatts concluded that the cash-and scrip offer was not superior to the proposed merger with Tabcorp.

Tabcorp and Tatts announced in October that they intend to merge to create a world-class diversified gambling group with an enterprise value of about $11.3 billion.

Tatts shareholders would receive 0.8 Tabcorp shares and 42.5 cents in cash for each Tatts share held.

The transaction implied a value of $4.34 per Tatts share.

On completion of the transaction, Tabcorp shareholders would own about 42 per cent of the combined group and Tatts shareholders about 58 per cent.