PointsBet says Betr offer still below MIXI bid while Betr chair makes plea
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More news: PointsBet has said that Betr's all-scrip takeover offer is still "materially below" MIXI's offer.
PointsBet said Betr's last closing share price of 28.5 cents implied a takeover value of $1.086 per share. This is below's Betr's estimate which was based at a share price of 32 cents which valued the bid at $1.22 while MIXI has offered a bid of $1.20 per share.
Meanwhile, Betr chair Matt Tripp sent an open letter to PointsBet shareholders touting $48 million in synergies and making a personal plea to favour his gambling company’s renewed bid.
Tripp says Betr commissioned Ernst & Young, Deloitte, and Arnold Bloch Liebler to conduct independent due diligence.
According to the letter, the consultants found potential annual cost synergies of between $41.6 million and $47.5 million should Betr fully acquire PointsBet. He also claimed that the potential capitalised value of the synergies could be in excess of $400 million.
Tripp also said that customer crossover analysis “showed lower crossover than we anticipated” which suggested to him that “any revenue dis-synergy would at worst be in line with our expectations and financial modelling”.
He also said he was “personally committed to this combination” and urged PointsBet shareholders to get in touch with him and Betr chief executive Andrew Menz with any questions.
PoinstBet shareholders are due to vote on MIXI’s proposed deal on 25 June. Betr, which holds a 19.9% stake, intends to vote it down.
What they said: “This opportunity has my full focus and commitment. I would love you on this journey with me,” Tripp said in the letter.
PointsBet continues trading halt as Betr announces new takeover bid
More news: Gambling company PointsBet will remain in a trading halt pending a further announcement after rival Betr said it would make an all-scrip takeover offer in another attempt to outbid Japanese entertainment giant MIXI.
The PointsBet and Betr had been in a trading halt earlier this morning but only Betr shares have resumed trading.
At 2:10pm AEST Betr shares had risen 1.8% to $0.29.
Betr to make an all-scrip takeover offer for PointsBet
The news: Gambling company Betr Entertainment is intending to make an all-scrip off-market takeover offer for rival PointsBet along with a selective buy-back of the shares it issues to PointsBet shareholders who accept the offer.
Betr's announcement comes just days after the PointsBet board rejected its initial bid as “materially below” an ongoing $1.20-per-share offer from Japanese entertainment giant MIXI.
The numbers: Betr will offer 3.81 Betr shares for each PointsBet share it does not currently own.
Betr said the offer was based on a Betr share price of $0.32, which would put the offer at $1.22 per share. This is comparable to the 30-, 60- and 90- day volume weighted average price according to the company.
In addition, a selective buy-back option of Betr shares will be available for PointsBet shareholders to receive cash of $1.22 per PointsBet share. It would be conducted after the offer closed and would be capped at a total of $80 million. The company said this could conditionally increase to $200 million.
PoinstBet and Betr shares entered a trading halt this morning pending this announcement.
The context: The Betr proposal that was rejected earlier this week offered a mix of cash and scrip which the company said would have given PointsBet an implied equity value of $360 million.
It also said the deal could deliver $40 million in synergies and a “potential value outcome” of $1.33 per share for PointsBet shareholders.
PointsBet said in its rejection announcement on Monday that the offer, which amounts to about 57% in cash and 43% in scrip, comes in below the $1.20 in cash per share offered by MIXI.
PointsBet shareholders — of which Betr is the largest given its 19.9% stake — are due to vote on MIXI’s proposed all-cash $1.20-per-share takeover bid on 25 June.
MIXI improved its bid earlier this month from an initial offer of $1.06 that was made in February. At the time, a Betr takeover bid was also rejected in favour of MIXI.
Betr chair Matt Tripp today released an open letter to all Pointsbet shareholders campaigning for Betr’s new proposal.
What they said: “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,” Betr chair Matt Tripp said.
