Betr has renewed its bid to acquire PointsBet, despite the latter’s satisfaction with the MIXI proposal. Betr is now offering AUD 1.89 per PointsBet share.
**Betr Resumes the Negotiations**
Betr has re-entered negotiations with a new all-share offer, proposing AUD 1.89 per PointsBet share, factoring in expected synergies of AUD 0.67 per share. This is a revised version of Betr’s previous offer, which PointsBet had rejected. Betr is effectively proposing 3.81 of its shares for each PointsBet share.
Betr claims its latest offer is superior to MIXI’s, which failed due to insufficient shareholder support. Additionally, Betr is offering PointsBet shareholders a chance to engage in the potential value creation of the merged entity.
“This is just the start of the value creation journey we envisage for Betr and PointsBet shareholders for the combined business.” – Betr statement
If successful, PointsBet shareholders could benefit from up to AUD 44.9 million in synergies.
**Betr Leveraged Its Shareholding to Block the MIXI Proposal**
Holding a 19.9% stake in PointsBet, Betr was instrumental in blocking the previous vote. Although MIXI’s proposal received necessary regulatory nods, it failed to gather enough shareholder votes.
Betr welcomed this result but criticized PointsBet management for a prior technical mishap that did not properly account for Betr’s votes, mistakenly suggesting the vote had passed.
While MIXI pursued an all-cash offer, contrasting with Betr’s all-share approach, PointsBet leaned towards MIXI, citing concerns over the uncertainty of Betr’s projected synergies. Betr, however, dismissed these concerns, asserting that its projections are backed by multiple expert forecasts.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com