PointsBet has been the subject of yet another takeover offer from Betr, despite airing its concerns with the bid to the Australian government.
Betr has made clear that the terms of its new offer include 4.219 Betr shares for each PointsBet share held by those who back the bid.
That value equates to each shareholder receiving A$1.35 (£0.66) for each PointsBet share, based on the most recent closing price of Betr shares, which was A$0.32.
Betr, which owns Australian challenger brand BlueBet, has insisted that such terms represent a “superior” offer to the one put forward by rival bidder MIXI Australia, a wholly owned subsidiary of Japanese tech company MIXI, which involves A$1.20 cash per PointsBet share.
Betr said it plans to increase its offer “on or immediately following the opening of the offer”.
A statement from Betr read: “Betr continues to firmly believe in the combination rationale and that we can create material value for PointsBet and Betr shareholders by integrating these two businesses, allowing us to profitably grow our share of the Australian wagering market.
“That upside is not available to PointsBet shareholders under the inferior all-cash MIXI offer. PointsBet shareholders should continue to take no action until both offers are open.
“Betr expects that the PointsBet board will reconsider its recommendation that PointsBet shareholders accept the MIXI offer and will now recommend the Betr offer.”
The prior offer from Betr, worth A$1.22 per share, was deemed “unattractive”, as well as “highly conditional” and “overstated” by the PointsBet board, which at the time yet again recommended shareholders give their backing to MIXI’s off-market bid instead.
PointsBet has now gone to the Australian government with those same concerns regarding Betr’s bid, which it believes has been submitted in a “highly misleading and unbalanced way” that “fails to adequately explain the assumptions and sensitivities affecting value”.
Betr’s offer sparked concerns from PointsBet, which informed Australia’s Takeovers Panel of what it perceives to be overstated value of cost synergies, with Betr accused of failing to take into account the level of customer crossover between the two operators.
The synergies identified by Betr “contain material errors and are presented in a misleading, incomplete and unbalanced manner”, as per the interim order application PointsBet submitted to the Takeovers Panel.
PointsBet has also expressed concern with Betr’s share buy-back proposal, which it argues effectively offers a cash alternative outside the formal offer and should be classed as an inducement, which would breach regulations.
Additionally, PointsBet has accused Betr chair Matthew Tripp of failing to disclose the true extent of both his and his associates’ voting power in Betr.
The final orders sought by PointsBet from the Takeovers Panel include restraining Betr from undertaking the “selective buy-back”, a revised bidder’s statement to address the identified “disclosure deficiencies” and for Tripp to provide “corrective substantial holder disclosure”.
The interim order read: “The president orders that Betr not send copies of the bidder’s statement and offer document under its takeover bid for PointsBet to PointsBet shareholders.”
The order will remain in effect until further instruction from the Takeover Panel, the determination of the proceeding or two months from the order issue date.
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Saga rumbles on as Matthew Trip and co. look to hijack MIXI deal, while Takeovers Panel’s interim order prevents Betr from “dispatching the Betr’s bidder’s statement”
The post PointsBet involves Australian government as Betr submits another takeover offer first appeared on EGR Intel.