Betr lobs improved buyout bid for PointsBet
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The news: Online bookmaker Betr has submitted a revised bid for PointsBet, less than a day after rejecting rival takeover suitor and Japanese entertainment company MIXI’s proposal to increase its all-cash off-market takeover offer for the company.
The numbers: Betr said it would upgrade its offer from 4.219 Betr shares per PoinstBet share it does not already own to 4.375 Betr shares. The increased offer amounts to $1.40 per PointsBet share based on Betr’s recent $130 million capital raise price of $0.32.
Betr also said it will increase its selective buy-back pool from at least $80 million to at least $90 million – subject to required resolutions being passed at its upcoming AGM.
The context: Betr says that the implied value of its increased bid is superior to MIXI’s “best and final” offer of $1.30 cash per PointsBet share, conditional on taking a 90% stake in the company which would have triggered a compulsory takeover. This would mean buying out the 19.6% stake Betr already holds in PointsBet.
As at 20 August, MIXI and its associates had a 37.12% interest in PointsBet. This included shares initially owned by the company in addition to takeover offer acceptances by the PointsBet board, reportedly from Stake.com founder Ed Craven and through pre-bid acceptance agreements.
MIXI and Betr have been trying to outbid each other for PointsBet throughout the year.
The source: ASX
