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Bennelong backs PointsBet's Betr rejection

PointsBet CEO Sam Swanell has secured the support of a major institutional shareholder in rejecting a takeover offer from Matt Tripp's Betr, and hit out at media coverage of the saga.

John Buckley
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Earlier this month, MIXI improved its bid and upped the cash consideration on its previous offer by 13.2% from $1.06 to $1.20 per share, valuing PointsBet at $402 million. Shareholders will vote on the proposal next week. AAP/James Gourley.

PointsBet CEO Sam Swanell has secured the support of shareholder Bennelong Long Short Equity Management for a bid from Japanese entertainment firm MIXI, after turning down its rival and largest shareholder, Betr.

The support arrives at odds with a takeover campaign run by Matthew Tripp’s Betr, which is set to come to a head next week, when shareholders vote on MIXI’s proposal to acquire the company via a scheme of arrangement for $1.20 per share.

Bennelong portfolio manager Sam Shepherd said the starting point for relative value in the Betr bid was “all wrong”. He said the non-binding cash and scrip offer, which Betr claims is superior to the MIXI bid, is complex and “not even close” to something the fund would contemplate.

“But then, there are other show-stopping issues with it as well. PointsBet has an ungeared balance sheet, and the environment for wagering and sports betting is challenging at the moment, and there are regulatory issues,” Shepherd told Capital Brief.