Betr tables fresh bid for PointsBet after securing 19.9% stake
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The news: Betr Entertainment has tabled a revised takeover proposal for rival book maker PointsBet, valuing the target at $360 million.
The numbers: The proposal presented to the PointsBet board comprises $260 million in cash and $100 million in Betr scrip.
PointsBet said synergies could amount to more than $40 million annually, delivering a potential value outcome of $1.33 per share for PointsBet shareholders.
Shares were up 0.9% to $1.07 at 2:30pm AEST.
The context: Betr became PointsBet's largest shareholder on Monday after acquiring a 19.9% interest from two of the company's top investors.
The company will undertake an equity raising of $130 million to partially fund the acquisition of its 19.9% holding, and partially fund the 100% buyout.
Betr said it intends to vote all of its shares against the current proposal by rival suitor Mixi, a Japanese sports and entertainment group. Betr said its own proposal creates a "materially scaled player" and offers significant synergy opportunities to shareholders.
The company said it has also "fully addressed" concerns raised by PointsBet in a letter to shareholders earlier this month, including improving its funding certainty, synergy realisation and due diligence timing.
What they said: "Our proposal is supported by materially enhanced funding security, and as the largest shareholder in PointsBet, we now intend to vote our holding against the current MIXI proposal, reducing its likelihood of success" said Betr chairman Matthew Tripp.
"I am confident PointsBet shareholders will recognise the benefits of our proposal as we work towards again becoming leaders in the Australian wagering market."
Betr CEO Andrew Menz commented: "The transaction provides a clear pathway for Betr to become the clear number four wagering player in the Australian market, within the 10-15% market share 'sweet spot'."
The source: ASX
