Key points:
- PointsBet has revealed that the Betr offer could reasonably be expected to lead to a ‘Superior Proposal’
- This would put Betr ahead of Mixi in the race to acquire PointsBet
- Both of their offers are around the AU$360m mark
PointsBet has released an update regarding Betr’s proposal to acquire the company.
In its memo, PointsBet Board explains that “with the assistance of external advisers, [PointsBet] has considered the proposal and determined that it could reasonably be expected to lead to a ‘Superior Proposal’” compared to the one put forward by Mixi.
As such, PointsBet has proposed that mutual due diligence should be undertaken between the company and Betr to see whether the acquisition would be suitable.
This will include an initial focus on the “value of synergies and Betr scrip,” as the shareholders are considering a 57% cash and 43% scrip funding ratio.
PointsBet also emphasises that shareholders do not need to take any action in response to this, as the Board will continue to publish any developments as they arise.
Good to know: Since withdrawing from the US, PointsBet has continued to focus its efforts in Australia, which might explain the interest from both Mixi Australia and Betr
In this update, the PointsBet Board also explained that it “remains committed to, and unanimously recommends, that PointsBet shareholders bote in favour of the Mixi Scheme, in the absence of a Superior Proposal and subject to the Independent Expert continuing to conclude that that Mixi Scheme is in the best interests of the PointsBet shareholders”.
The initial proposal from Mixi was announced in February, when the Japanese sports and entertainment organisation revealed it had offered to take over PointsBet for AU$353m (US$223.2m).
However, Betr proposed its own deal a month later, which would see the company acquire 100% of the remaining PointsBet shares with an equity value of AU$360m.
