Betr receives proxy support for PointsBet selective buyback
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The news: Online bookmaker Betr has announced "overwhelming shareholders support" for its selective buyback resolution, unveiled as part of an all-scrip takeover offer for ASX rival PointsBet.
The move would enable some eligible PointsBet shareholders to receive cash of $1.22 per share held, up to a total of $80 million.
The numbers: Betr said 75% of proxy votes, voting intention statements, and confirmations of proxy voting intentions were in favour of the selective buyback resolution. Betr shareholders will vote on the resolution at a shareholder meeting on 25 August.
The context: PointsBet's board rejected Betr's all-scrip proposal on Thursday, amid a long-running takeover battle with Japanese entertainment company MIXI.
On Wednesday, Betr said it would upgrade its all-scrip takeover offer from 3.81 Betr shares per PointsBet share it did not already own to 4.219 shares. Also included in the offer is an $80 million selective buyback for PointsBet shareholders accepting the bid.
However, the Takeovers Panel made an interim order last week blocking Betr from despatching its latest bidder's statement, after the PointsBet board argued the offer was "presented in a highly misleading and unbalanced way”.
PointsBet told the panel that by promoting a selective buy-back of Betr shares, the Betr is seeking "in effect to offer PointsBet shareholders a cash alternative to the all-scrip offer" which represents "a clear inducement to encourage acceptance" of the Betr offer.
What they said: "This early and decisive support for the selective buy-back resolution from more than 75% of the Betr register will instil further confidence in PointsBet shareholders that the selective buy-back will proceed as announced," said Betr chairman Matthew Tripp.
The source: ASX
