A halt in trading of BetMakers Technology Group shares implemented by the Australian Securities Exchange (ASX) today is fueling rumors the tech company’s bid to acquire Tabcorp’s media and sports wagering units could be successful.
Halt in Stock Trading
According to the information provided by the ASX the suspension in trading of BetMakers shares was a result of a request from the company, which said it would make an announcement for a “material acquisition”.
“The Securities of BetMakers Technology Group will be placed in trading halt at the request of BET pending it releasing an announcement.”Statement, ASX
BetMakers requested its stock be suspended from trading until Monday, June 21, stating it was not aware of any reason why its request should not be granted.
“Unless ASX decides otherwise, the securities will remain in trading halt until the earlier commencement of normal trading on Monday, June 21, 2021, or when the announcement is released to the market.”Statement, ASX
The letter BetMakers sent to the ASX to request the suspension of trading with its stock did not mention anything about Tabcorp, but the timing is particularly interesting and fueling rumors the pending acquisition announcement could be related to Tabcorp, especially with regards to the scheduled meeting of Tabcorp Board of Directors Sunday to discuss the offers received for its media and sports betting units.
BetMakers entered the fray of suitors last month after tabling AU$4 billion ($3.1 billion) in cash and stock deal, joining the likes of UK-based gambling group Entain and private equity firm Apollo Global Management.
BetMakers bid came as a surprise to industry observers and gaming analysts due to the smaller size of the tech company compared to its target, as well as the lack of financial muscles compared to the other suitors.
Tripp a Surprise
It may turn out that the pending material acquisition announcement by BetMakers has nothing to do with the media and sports betting assets of the Australian gambling operator Tabcorp, and instead, BetMakers springs a surprise.
This hypothesis is fueled by an agreement the technology company signed with Matt Tripp in February, to utilize the sports betting industry expertise and business acumen of the former CEO of Beteasy and Crownbet in its continued expansion efforts in Australia.
Under the deal, Tripp will also advise BetMakers to establish a presence in the US market and take advantage of the vast growth potential there.