Betr launches all-scrip takeover bid for PointsBet
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The news: Betr Entertainment has launched an all-scrip off-market takeover offer for PointsBet weeks after an offer from Japanese entertainment company MIXI did not pass a shareholder vote.
The numbers: An ASX filing published after market close on Wednesday says that Betr’s offer of 3.81 Betr shares for every 1 PointsBet shares not already held by Betr equates to $1.22 per PointsBet share (based on a $0.32 Betr share price), coming in above MIXI's offer of $1.20 cash per PointsBet share.
Betr said that as a 19.6% shareholder in PointsBet, it believes that its offer represents a superior proposal for all PointsBet shareholders compared to MIXI's bid.
The context: On Wednesday, Betr said that the offer gives shareholders the opportunity to participate in the value creation available in the combined businesses, including $44.9 million of annual cost synergies, estimated to equate to up to $0.67 per PointsBet share if fully realised.
Betr argues that the combination of the offer of $1.22 per PointsBet share and the cost synergies value equate to up to $1.89 in potential value per PointsBet share.
Betr’s offer follows a controversial shareholder vote on MIXI's $402 million takeover bid in late June, which saw share registry Computershare explaining that an “issue with the system set up for the meeting” resulted in a counting error. Betr had claimed its vote was "impermissibly excluded", after the results showed that 95.69% of PointsBet shareholders voted in favour of the resolution.
The revised results of the shareholder meeting showed that 70.48% voted to approve the resolution, short of the 75% threshold.
What they said: When Betr announced that it was planning to submit the all-scrip bid in late June, Betr chair Matt Tripp released an open letter to all Pointsbet shareholders campaigning for the new proposal. “This is a compelling opportunity to consolidate value in the Australian wagering sector. Our offer provides PointsBet shareholders with flexibility — either cash for immediate liquidity or the ability to participate in the long-term upside of the combined entity,” Tripp said.
The sources: ASX, ASX, Capital Brief
