Sydney-listed betting and gaming operator PointsBet confirmed Monday that it has not ruled out Betr Entertainment’s proposal to acquire the company.
With the assistance of external advisers, the PointsBet Board has considered Betr’s recently revised proposal, which implies an equity value of AUD$360 million, comprised of $260 million cash and $100 million in Betr scrip.
The Board has determined that the proposal “could reasonably be expected” to lead to a superior proposal, relative to the proposed scheme of arrangement between PointsBet and MIXI.
As a result, Pointsbet is proposing a phased mutual due diligence process to be undertaken by Pointsbet and Betr.
PointsBet’s initial focus will be on the value of synergies and Betr scrip, noting that the implied value of the proposal for shareholders is “heavily dependent on these two elements given that the proposal contemplates a 57 per cent cash / 43 per cent scrip funding mix.”
Despite today’s announcement, the PointsBet Board remains committed to, and unanimously recommends, that PointsBet shareholders vote in favour of the MIXI Scheme, in the absence of a superior proposal.
This remains subject to the company’s Independent Expert continuing to conclude that the MIXI Scheme is in the best interests of PointsBet shareholders.
Beter recently acquired a 19.9 per cent stake in PointsBet from two of the company’s largest shareholders, and is now the company’s largest shareholder.
Shares in PointsBet Holdings Ltd (ASX:PBH) closed unchanged at AUD$1.09 per share in Sydney earlier Monday, while shares in Betr Entertainment Ltd (ASX:BBT) closed at $0.32.