Tatts Group has sold its UK slots division Talarius to Novomatic in a deal worth AUS$210m (€141.2m).
In a statement confirming the agreement, Tatts said that proceeds from the deal would be used to help pay off its corporate debt as the company targets year-end profits of AUS$255 – 265m, performing slightly under analyst expectations.
The sale of Talarius follows three years of intense effort to improve the performance of a business that struggled since its acquisition by Tatts back in 2008
Last year Talarius, which operates Quicksilver arcade venues, contributed less than two percent of Tatts’ overall earnings for the 12-month period. Tatts governance reported that overall the company would record a loss of AUS$50m on the sale of its asset.
In a statement to the ASX Tatts chief executive Robbie Cooke, said: “The sale of Talarius follows three years of intense effort to improve the performance of a business that struggled since its acquisition by Tatts back in 2008.”
Tatts said its full-year results for the current year will include contribution from Talarius as a discontinued operation up to 19 March, the official date of the sale.