Pointsbet rejects Bluebet takeover bid due to funding concerns
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The news: Wagering group Pointsbet has rejected a counteroffer from rival Bluebet, saying the proposal was unfunded and lacked details of potential synergies, adding that the suitor sought a "significant amount of time" to undertake due diligence.
The numbers: Pointsbet shares, which jumped 32.5% after the offer was announced on Wednesday, were up 0.9% to $1.11 at 3pm AEDT. Bluebet shares fell 4.1% to 35.5 cents.
Pointsbet rejected the offer, which valued the company at up to $360 million, in favour of an existing $353 million proposal by Japanese sports and entertainment giant Mixi.
The context: Pointsbet said that it had considered Bluebet's offer but determined that it "could not reasonably be expected to lead to a superior proposal to that announced earlier today from Mixi".
What they said: "The proposal was unfunded, subject to an explicit financing condition, and would require Bluebet to both raise $100 million in debt and undertake a large upfront capital raising ($160 million), the terms of which were uncertain and could materially affect the value ultimately received by Pointsbet shareholders," Pointsbet said in a statement.
The source: ASX
