Betr has submitted a new all-stock, off-market takeover offer for PointsBet, as the battle to acquire the Australia- and Canada-facing operator takes a new twist.
The new proposal offers PointsBet shareholders the chance to earn 3.81 Betr shares for every PointsBet share, equivalent to A$1.22 per share, based on Betr’s share price of A$0.32.
The BlueBet parent company, which remains PointsBet’s largest shareholder with a 19.6% stake, said the bid is “superior” to the A$1.20 per share offer submitted by Japanese conglomerate MIXI.
Last month, MIXI’s takeover efforts fell short of securing PointsBet shareholder approval following a vote error.
Though MIXI’s bid looked to have received sufficient backing, a re-vote was ordered by Betr after it claimed its own proxy vote against the offer was not taken into account.
Soon after, PointsBet cited a system error on the part of third-party platform Computershare as the reason behind Betr’s vote being incorrectly excluded from the final tally.
MIXI proceeded to launch its own off-market bid valuing the business at A$1.20 per share.
Betr outlined the reasons behind why its offer should be a more appealing one than MIXI’s, noting that PointsBet shareholders will have the chance to participate in “the significant value creation available to the combined business”.
That includes the estimated A$44.9m of expected annual cost synergies, which, if realised, is estimated to equate to A$0.67 per PointsBet share.
Combining both forecasted cost synergies and the A$1.22 per share offer, Betr’s proposal has a potential value of A$1.89, bosses said.
The offer will open on 31 July and close on 8 September and is still awaiting approval from Betr’s own shareholders, among other stipulations.
The operator has noted there is no minimum acceptance condition, while it could still increase its offer and will a deliver a new update if required.
A Betr statement read: “This is just the start of the value creation journey we envisage for Betr and PointsBet shareholders for the combined business.
“Significantly, in addition to this, PointsBet shareholders can benefit from the additional longer term value upside and potential re-rating from the Betr management team’s unparalleled track record of success, and the advantages of scale in a fast-consolidating market, as Australia’s only ASX-listed pure-play digital wagering operator, with increased institutional investment appeal and a potential pathway for S&P/ASX 300 index inclusion.”
Both MIXI and Betr have been submitting competing offers since February of this year.
The post Betr submits fresh takeover bid for PointsBet first appeared on EGR Intel.
Acquisition saga continues as operator looks to capitalise on MIXI re-vote controversy with new all-stock, off-market proposal that potentially values PointsBet at A$1.89 per share
The post Betr submits fresh takeover bid for PointsBet first appeared on EGR Intel.