Key points:
- Betr has proposed the acquisition of 100% of PointsBet's stocks not already owned by the company
- The acquisition is valued at a total of AU$360m
- The operator hopes its proposal is more appealing to shareholders than the proposal for takeover proposed by Mixi in February
Betr has released its proposal to acquire 100% of the remaining PointsBet stocks via a Scheme of Arrangement transaction. Currently, Betr owns 19.9% of PointsBet’s stocks, making it the company’s largest shareholder. The acquisition is set to reflect Betr’s commitment to the brand.
The proposal suggests an equity value of AU$360m (US$231.1m), of which AU$260m would be paid in cash and a further AU$100m in Betr scrip (an in-company substitute for legal tender).
To gather AU$260m in cash, Betr has initiated several funding initiatives. The operator has taken on AU$120m in debt from the National Australian Bank, and has sold several PoinstBet Canada assets to Seminole Hard Rock Digital, subject to conditions. Betr has also announced an underwritten equity raise of AU$130m, with AU$20m committed by Matt Tripp and Michael Sullivan, the current and former Chairman of BlueBet, which merged with Betr earlier this year.
On the proposal, Betr Chairman Matt Tripp said: "Our offer represents a clearly superior proposal for PointsBet shareholders to realise significant value. We have fully addressed the concerns raised by PointsBet in its Letter to Shareholders on 3 April 2025, including enhancing our funding certainty, synergy realisation and due diligence timing.
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“Our proposal is supported by materially enhanced funding security, and as the largest shareholder in PointsBet, we now intend to vote our holding against the current Mixi proposal, reducing its likelihood of success. I am confident PointsBet shareholders will recognise the benefits of our proposal as we work towards again becoming leaders in the Australian wagering market.”
Indeed, in late February, Mixi offered to takeover PointsBet for AU$353m. Betr hopes its proposal will appeal more to shareholders, as it offers ‘significantly greater value to PointsBet,’ according to a press release by the operator.
Betr CEO Andrew Menz added: "The transaction provides a clear pathway for Betr to become the clear number four wagering player in the Australian market, within the 10-15%% market share "sweet spot". To support this goal, we have completed a detailed bottom-up build of the synergy potential and expect a prize of AU$40m in annual cost synergies within the first full year of ownership.”
