PointsBet’s board of directors has dismissed the latest takeover proposal made by Betr, as the M&A war Down Under nears its conclusion.
Betr’s most recent offer was an unsolicited all-scrip reverse takeover proposal, which would see PointsBet shareholders receive 4.219 Betr shares for every PointsBet share they own.
The offer, valid until 22 September, is worth up to A$1.35 (65p) per share, based on Betr’s recent oversubscribed A$130m capital raise valued at A$0.32 per share.
Betr attested that its offer was superior to the one tabled by rival bidder MIXI, citing factors including “compelling synergies”, greater management experience in the gaming industry and enhanced value creation for shareholders.
The bid went live yesterday, 18 August.
The operator had also sought intervention from the Australian Takeovers Panel, requesting interim restraints against MIXI from processing acceptances of its offer from PointsBet shareholders.
Earlier this month, MIXI submitted a “best and final” takeover proposal worth A$421m, equivalent to A$1.25 per share.
The Japanese conglomerate also owns 36.7% of PointsBet shares.
Betr claimed that PointsBet shareholders weren’t given ample time to review both bids, also alleging that a confidentiality deed between PointsBet and MIXI hadn’t been disclosed to the market.
The Takeovers Panel denied Betr’s request, stating that shareholders had enough time to consider both offers, and that neither PointsBet nor MIXI were under any obligation to disclose a confidentiality agreement.
While acknowledging that Betr has provided greater clarity regarding its proposal, PointsBet’s board of directors continued to give its backing to MIXI’s offer.
A PointsBet statement read: “As stated in the SBB (selective buy-back) Betr announcement, and pursuant to the Betr undertaking, Betr has significantly altered its disclosure in relation to the proposed timeline and sequencing of the SBB, including the disregarding of all voting directions provided by Betr shareholders in relation to the SBB meeting.
“The statement more appropriately describes the detail of the SBB being proposed by Betr and makes it clear that there is no certainty that the SBB will occur and that PointsBet shareholders should not place any reliance on the SBB when deciding whether or not to accept the unsolicited Betr scrip offer.
“The PointsBet board recommends that PointsBet shareholders take no action in relation to the unsolicited Betr scrip offer.
“The PointsBet board continues to unanimously recommend that PointsBet shareholders accept the previously announced MIXI takeover offer, in the absence of a superior proposal. Each PointsBet director has now accepted the MIXI takeover offer.”
MIXI’s own offer will remain open until 25 August.
The post PointsBet board dismisses latest Betr takeover bid first appeared on EGR Intel.
Australian operator continues to unanimously recommend shareholders accept the rival proposal on the table from MIXI, despite securing greater disclosures from Betr on bid details
The post PointsBet board dismisses latest Betr takeover bid first appeared on EGR Intel.