Betr puts forth a final offer for PointsBet's acquisition
Betr Entertainment's persistence in pursuing PointsBet doesn't seem to be waning, though the absence of an all-cash offer remains a sticking point.
Here's the latest scoop on this ongoing saga: Betr recently put forth an all-share takeover offer, appraised around AUD 1.22 per PointsBet share, anticipating some value for PointsBet shareholders from potential synergies and leadership know-how in a merged entity.
Yet, PointsBet regarded this offer as "materially below" a competing bid from MIXI, a Japanese digital entertainment conglomerate. MIXI's offer delivers AUD 1.20 in cold, hard cash per share, amounting to approximately AUD 402 million in total, offering significant premium over Betr’s proposal.
PointsBet officials weren't shy about voicing their criticism, labelling Betr's financial assumptions and synergy claims as unrealistic and overblown. Consequently, PointsBet gave a decisive thumbs-down to Betr's offer and nodded in favor of MIXI's all-cash proposal, which offers immediate value and certainty, unlike Betr's all-share offer.
MIXI's acquisition of PointsBet already earned a nod from Australia's Foreign Investment Review Board. The only regulatory hurdle left is Canada's approval, with a shareholder vote set for June 25th, 2025.
To put it bluntly, PointsBet shareholders appear more enamored with the MIXI offer's instant cash than Betr's all-share proposal. Seems like points are against Betr in this game of cat and mouse.
Investors seem to favor MIXI's all-cash offer over Betr's all-share offer, as the former presents immediate value to PointsBet shareholders. The concern about Betr's financial assumptions and synergy claims appears to be a significant factor in this decision, as opposed to investing in a business merge with uncertain returns.
