Tabcorp’s share price was down by more than 80% today to reflect the demerger of the two businesses, and the outlook for Tabcorp as as standalone wagering business.

Tabcorp has separated its wagering and gaming businesses as a way to optimise their capital structures and market values. Prior to the demerger, Tabcorp had a market capitalisation of approximately $11.9 billion. This is based on 2,225,771,703 shares on issue and a share price of $5.34.

Tabcorp will continue to hold the Wagering, Media and Gaming Services businesses, and a new standalone ASX-listed company, The Lottery Corporation Limited, will hold the Lotteries and Keno businesses.