PointsBet Considers Betr’s Takeover Proposal, Eyes Due Diligence

Australian sports betting giant PointsBet has published a new update regarding Betr Entertainment’s recent acquisition proposal.

Betr Seeks to Acquire PointsBet

Last month, Betr Entertainment revealed a revised proposal to acquire PointsBet, confirming that it is looking to complete its buyout of the latter company. This came shortly after the former company acquired a 19.9% stake in PointsBet, immediately positioning itself as one of its biggest shareholders.

In its recent Australian Stock Exchange (ASX) filing, Betr proposed to acquire the remaining PointsBet shares via a Scheme of Arrangement. This proposal valued the sportsbook company at $360 million, which would consist of $260 million in cash and $100 million in Betr scrip.

Betr argued that its proposal would deliver more value to PointsBet shareholders than a separate proposal by MIXI Australia. Betr further asserted that synergies could amount to over $40 million a year, delivering a potential value outcome of $1.33 per share for PointsBet shareholders.

After examining the proposal, PointsBet has agreed that the takeover by Betr could deliver more value to the company and its investors.

PointsBet Proposes Form of Mutual Due Diligence

In its latest announcement, PointsBet said that its board of directors has discussed the matter with third-party advisers and determined that Betr Entertainment’s proposal “could reasonably be expected to lead to a “superior proposal” compared to MIXI’s proposed scheme of arrangement.

As a result, PointsBet has proposed that a form of mutual due diligence be undertaken by Pointsbet and Betr. The former company elaborated that, as is customary, this due diligence would be phased.

PointsBet also explained that its initial focus in the due diligence process would be on the value of synergies and Betr scrip. The former company pointed out that the implied value of the transaction for shareholders would heavily depend on these two elements.

PointsBet noted that shareholders do not need to take any action yet. The company’s board vowed to keep them well-informed of further developments regarding the possible deal.

MIXI Takeover Still on the Table

In the meantime, PointsBet’s board didn’t rule out the MIXI Scheme either. On the contrary, the board remained committed to the deal, at least until the due diligence of the Betr proposal concludes.

As of the date of this announcement, the PointsBet Board remains committed to, and unanimously recommends, that PointsBet shareholders vote in favor 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.

PointsBet statement

Betr’s acquisition proposal came several months after its merger with BlueBet.