PointsBet Weighs in on Betr’s Improved Disclosure

PointsBet has welcomed Betr Entertainment’s improved disclosure, although the former company’s leaders have remained unconvinced by its suitor’s acquisition proposal. In any case, this small victory is a ray of light for Betr, the latest proposals of which have been largely dismissed by PointsBet.

Betr Continues Its Efforts to Acquire PointsBet

Betr has long sought to acquire PointsBet, a sports betting operator with a presence in both Australia and Canada. However, MIXI Australia, the Australian arm of the Japanese tech giant MIXI, has likewise expressed interest in acquiring PointsBet, leading to a clash between the two suitors.

Throughout this battle, Betr and MIXI have largely relied on vastly different strategies. While MIXI’s all-cash approach offers certain value, Betr’s all-scrip unsolicited takeover offer has higher theoretical value due to purported value-generating synergies between Betr and PointsBet.

Per its latest update, Betr is now offering 4.2 of its own shares for each PointsBet share. This implies a value of up to AUD 1.35 per PointsBet share.

However, PointsBet, which eyed an earlier Betr proposal, has mostly stuck with MIXI’s all-cash proposal, due to the conditional and somewhat uncertain nature of Betr’s deal.

PointsBet Applauded Betr’s Improved Disclosure

In its latest update, PointsBet applauded Betr’s greatly improved disclosure, acknowledging the latter company’s efforts to improve its proposal. This comes in the wake of PointsBet’s criticism of the deal, as the sportsbook operator insisted that Betr’s deal does not properly communicate certain risks and uncertainties.

Among other things, PointsBet accused Betr of overestimating the potential synergies between the two companies. The former company further insisted that certain overlaps will undermine the synergy projections.

Despite Betr’s improved disclosure, PointsBet has once again advised its shareholders to take no action regarding the all-scrip offer.

In the meantime, MIXI Australia continues to grow its shareholding in PointsBet. Per its most recent report, MIXI now owns a 36.71% stake in the sportsbook.

MIXI’s offer values PointsBet’s shares at AUD 1.25 apiece, with this being its “best and final” offer unless it acquires a 50% stake in the operator.

In any case, both suitors have secured key regulatory approvals in Australia and Canada, leaving the fate of the deal to PointsBet and its shareholders.

In other news, the Australian Takeovers Panel just rejected Betr’s request to restrain MIXI’s deal.