PointsBet gains resolutions approval for US sale

At an extraordinary general meeting on August 29, two resolutions regarding the acquisition of its US operations by Fanatics were passed. 

PointsBETEGM
Listen To Article

In its meeting, the Board put forward two resolutions. The first one addressed the ‘multi-stage completion process’ of its deal with Fanatics, which will see $175m of the $225m fee being received upon initial completion.

After this, when the full completion has been finalised, PointsBet will gain the remaining $50m (in a stage it describes as ‘subsequent completion’).

Once this is complete, PointsBet will distribute the net sale proceeds and cash reserves that are surplus to the needs of the remaining business to its shareholders.

This will happen in two stages, with an estimated AU$315m (US$203.7m) being sent upon initial completion – which PointsBet says should be circa mid-September – equating to around AU$1 per share.

Following that, upon subsequent completion, the remaining figure of around AU$125m to AU$143m (AU$0.39 to AU$0.44 per share) will be released in a second tranche – which should take place around March 2024.

Resolution two will see its key management personnel (KMP) receive a benefit regarding the ‘early vesting of performance share rights on a pro-rata basis.’

Both were passed, with resolution one receiving 99% approval in a poll and resolution two getting 84%, meaning both passed. 

PointsBet further stated that it believes these two resolutions are in the company’s best interests in regards to going forward: ‘The Board believes that the pro-rata vesting strikes an appropriate balance to motivate and retain key executives to ensure successful completion of the sale if the US business and to establish the framework for a successful and well-managed business going forward.’

Additionally, it stated the company will shift its strategy of expansion and growth towards maximising the amount of capital to be returned to shareholders, after the sale of its US operations.

Premium+ Connections
Premium
 
Premium
 
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium Connections
Consultancy
Executive Profiles
Tipico
Flutter
Galaxy Gaming
Churchill Downs Incorporated
Follow Us

Global Gaming Awards Asia-Pacific: Going live

The Global Gaming Awards Asia-Pacific are set for their firs...

Preview: SiGMA Asia 2024

SiGMA’s annual Asia summit comes back to Manila – signif...

Company profile: Praxis Tech

Being payments ready in Asia - A call to action for iGaming...