PointsBet board rejects Betr’s revised all-scrip takeover offer
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The news: The board of online bookmaker PointsBet has rejected a revised all-scrip takeover offer by Betr, made a week after the initial offer was bat away and on the same day as the federal government’s Takeovers Panel restricted the initial offer.
The numbers: 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.
It is the online bookmaker’s latest attempt to outbid Japanese entertainment company MIXI, whose $1.20 cash per PointsBet share takeover offer is open for acceptance.
Betr holds a 19.6% interest in PointsBet while MIXI holds a 24.7% interest in addition to a 1.9% interest through an institutional acceptance facility.
The context: In a statement to the exchange on Thursday, PointBet said its board “has determined, with the assistance of external advisers, that the Betr proposal is materially inferior to the MIXI takeover offer, even taking into account the proposed variation”.
The board continues to regard Betr’s “unsolicited, conditional reverse off-market all-scrip” takeover offer as “an inadequate outcome for PointsBet shareholders” and believes that potential net synergy potential following the proposed acquisition are “a material overstatement”.
The Takeovers Panel issued an interim order to prevent Betr from despatching its takeover offer after PointsBet complained that it is “presented in a highly misleading and unbalanced way”.
The source: ASX
