PointsBet’s board of directors has informed shareholders that the company is giving serious consideration to the revised takeover proposal from BlueBet parent company Betr.
Last month, Betr submitted a new A$360m (£174m) offer for the Australian operator, after its original cash-plus-scrip deal was rejected over fears the bid wasn’t fully funded.
At the time, the PointsBet board urged shareholders to instead back the A$353m bid submitted by Japanese firm MIXI.
Betr’s new proposal is comprised of A$260m in cash in addition to A$100m worth of Betr shares, with more than A$40m in synergies having been proposed by Betr.
Additionally, Betr’s proposal would give a potential outcome to PointsBet shareholders of A$1.33 per share, more than the A$1.06 on the table from MIXI.
The National Australia Bank has issued Betr with credit-approved terms for a A$120m financing facility, helping the firm to fund the cash part of its bid.
As part of the deal, Betr would also look to sell aspects of PointsBet’s Canada-facing operations to Hard Rock Digital for A$29.6m. This would help to reduce the amount of equity Betr needs to raise from A$160m to A$130m.
The business said A$20m has already been pre-committed by investors such as Betr chair Matt Tripp, former BlueBet chair Michael Sullivan, and the conversion of a A$15m loan note into equity.
The revised bid, which was made public on 29 April, also noted that Betr is PointsBet’s largest shareholder, owning 19.9% of the outstanding stock.
A PointsBet statement published today, 12 May, read: The PointsBet board, with the assistance of external advisers, has considered the proposal and determined that it could reasonably be expected to lead to a ‘superior proposal’, relative to the proposed scheme of arrangement between the company and MIXI Australia Pty Ltd, a wholly-owned subsidiary of MIXI, Inc.
“PointsBet therefore proposes that a form of mutual due diligence be undertaken by PointsBet and Betr.
“As is customary, this due diligence will be phased. PointsBet’s initial focus will be on the value of synergies and Betr scrip, as the implied value of the proposal for shareholders is heavily dependent on these two elements given that the proposal contemplates a 57% cash/43% scrip funding mix.
“Shareholders do not need to take any action at this time and the board will continue to keep shareholders and the market informed of developments.”
Despite agreeing to carry out due dilligence for the Betr bid, the PointsBet board is still urging shareholders to favour the MIXI proposal.
The statement continued: “As at the date of this announcement, the PointsBet board remains committed to, and unanimously recommends, that PointsBet shareholders vote in favour of the MIXI scheme, in the absence of a superior proposal and subject to the independent expert continuing to conclude that the MIXI scheme is in the best interests of PointsBet shareholders.”
The post PointsBet giving consideration to improved Betr takeover bid first appeared on EGR Intel.
Operator’s board of directors acknowledge the revised A$360m offer “could reasonably be expected to lead to a ‘superior proposal’” to that on the table from Japanese conglomerate MIXI
The post PointsBet giving consideration to improved Betr takeover bid first appeared on EGR Intel.