Sydney-listed wagering operator BlueBet is not backing down in its bid to acquire rival Australian operator PointsBet.
Bluebet outlined its argument to PointsBet shareholders on Thursday, stating that its offer represents an illustrative value of AU$1.28 per share compared to the $1.06 per share offer from Japan’s MIXI, which the board of PointsBet has recommended.
The company said that its offer, which includes a mix of cash and shares, delivers upside exposure to the synergy and growth potential of the combined business – “something not available in the all-cash MIXI proposal”.
BlueBet expects to achieve cost synergies in excess of $40 million by combining the businesses and moving forward with a single brand and platform strategy.
Matthew Tripp, chairman of BlueBet, said: “Our offer clearly represents a superior proposal for PointsBet shareholders to realise significant value. Unsurprisingly, we have been inundated with support for our offer in preference to the MIXI Proposal, which sees PointsBet shareholders leave meaningful value on the table.
“We are confident in progressing our superior proposal and creating the next great challenger brand in this market.”
BlueBet chief executive Andrew Menz added: “Our innovative transaction structure provides flexibility to all PointsBet shareholders to mix and match between their preferred combination of cash and scrip.
“Those opting to take scrip will gain exposure to significant potential upside, driven by an expected $40m cost synergy prize and further organic and inorganic growth as we consolidate the Australian wagering market.”
A combined BlueBet-PointsBet would have annualised turnover of approximately $4 billion and a 10 per cent share of the Australian online betting market.
Shares in BlueBet Holdings Ltd. (ASX:BBT) gained 5.08 per cent to close at AU$0.31 per share in Sydney Thursday, while shares in PointsBet Holdings Ltd. (ASX:PBH) climbed 1.38 per cent to $1.10 per share.