Tabcorp makes play on Tatts register

Just over a month since gaming groups Tabcorp and Tatts unveiled their $11.3 billion merger, Tabcorp has made a play to secure a cornerstone stake in Tatts.

Gaming giant Tabcorp has moved to secure a 10 per cent stake in Tatts Group for about $638 million, just over a month after announcing a $11.3 billion merger with its rival.

Tabcorp says it has entered into a cash-settled equity swap, which gives the company voting rights over 147 million Tatts shares, with an investment of $4.34 a share. The 10 per cent stake could help Tabcorp block a third party spoiling its tie-up with Tatts.

The company says the transaction is intended to help facilitate the proposed merger and provide shareholders with "improved financial outcomes".