Bank of America has lifted its stake in Tabcorp to more than five per cent, as the wagering giant continues to enjoy a strong recovery in its share price.
Tabcorp’s stock surged from 71 cents on August 26 to a high of $1.04 this week, before easing slightly to $1.02 at Wednesday’s close — a 40 per cent gain in just over a week. The company’s market capitalisation now sits at $2.34 billion, almost triple its value compared to 12 months ago when a disappointing 2023/24 financial result sent its shares tumbling.
Bank of America’s increased investment, taking its ownership to 5.06 per cent, was significant enough to trigger an ASX disclosure that it had become a substantial shareholder in Tabcorp. The move highlights growing institutional confidence in the company’s turnaround strategy and financial trajectory.
Under the Totalizator Act of 1997, no single shareholder is permitted to hold more than 10 per cent of Tabcorp without the explicit approval of the NSW government, ensuring oversight of major ownership positions in the wagering operator.