PointsBet rejects revised Betr takeover bid
Australian betting operator PointsBet Holdings has rejected fellow betting operator Betr Entertainment’s latest takeover offer, despite Betr announcing an increase in its proposed share-based consideration.
On 30 July, Betr increased its offer from 3.81 to 4.219 Betr shares for each PointsBet share. Still, in a statement, PointsBet’s board said it considered the offer materially inferior to the existing takeover offer from Japanese operator MIXI Australia.
In the statement, PointsBet noted that the revised offer does not address its previously expressed concerns, including doubts about Betr’s business model, customer base, and synergy benefits. These were outlined in a statement on 23 July.
PointsBet also has applied to the relevant regulatory body, the Takeovers Panel, raising concerns over disclosure issues related to Betr’s valuation. In response, the Panel has interim orders preventing Betr from distributing its bidder’s statement.
The PointsBet board continues to recommend the offer from social media provider MIXI, and MIXI holds a 24.7% stake in PointsBet, with an additional 1.9% interest through an institutional acceptance facility.
PointsBet has said it plans to release a detailed statement addressing the Betr proposal, but maintains that the MIXI deal offers a significantly better outcome for shareholders.
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