Betr proposes share swap takeover bid for PointsBet, surpassing Mixi’s offer
The all-scrip offer includes potential cost synergies and aims to provide long-term value to PointsBet shareholders.
Key points:
– The offer values PointsBet shares at approximately AU$1.22 (US$0.80) each, slightly higher than Mixi’s AU$1.20 cash offer
– The proposed merger could generate AU$44.9m in annual cost synergies, potentially adding AU$0.67 in value per PointsBet share
Betr Entertainment announced an all-scrip off-market takeover offer for all fully paid ordinary shares in PointsBet not currently held by Betr.
Under the offer, PointsBet shareholders would receive 3.81 Betr shares for each PointsBet share they own.
Betr Entertainment, which currently holds a 19.6% stake in PointsBet, announced that it has positioned its all-scrip takeover offer as a more attractive option for PointsBet shareholders compared to the rival bid from Mixi Inc and Mixi Australia.
The company highlighted that the offer allows shareholders to participate in the anticipated growth and value creation resulting from the proposed combination of Betr and PointsBet, referred to as the Combined Business.
The offer would allow shareholders to exchange 3.81 Betr shares for every PointsBet share, valuing each PointsBet share at approximately AU$1.22 based on a AU$0.32 price per Betr share. This offer is marginally higher than MIXI’s competing cash bid of AU$1.20 per share.
The proposed merger is expected to generate AU$44.9m in annual cost synergies, which could add up to AU$0.67 per PointsBet share if fully realised. These savings aim to improve the combined company’s profitability.
Good to know: Recently, PointsBet shareholders approved Mixi’s AUS$402m takeover bid following competing offers from both Mixi and Betr
According to Betr, combining the offer value with the potential synergies results in a total estimated value of up to AU$1.89 per PointsBet share.
Betr indicated that beyond the initial valuation and synergies, shareholders may benefit from future growth and operational scale following the merger.
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