Hard Rock Digital presents an offer to acquire PointsBet's Canadian division for AU$30 million, as per Betr's recent proposal.
Taking a Swing at PointsBet: Betr's New Moves Against MIXI's Bid
Things are heating up in the race for online gambling operator PointsBet, as Betr has upped the ante with a revised bid to beat out MIXI's offer. Betr, who merged with BlueBet last year, is now the largest shareholder, owning 20% of PointsBet, and they're gunning for control.
Betr's latest proposal, worth an estimated AU$360m (US$230m), includes AU$260m (US$166m) in cold, hard cash. But that's not all; they're also tossing in some Betr shares for good measure.
This new offer comes after Betr snagged a 19.9% stake in PointsBet on April 28. They've since secured a AU$120m (US$77m) financing facility with the National Australia Bank, and Hard Rock Digital has shown interest in buying PointsBet's Canadian business for around AU$30m (US$19m).
Betr believes their offer will create massive scale in the Australian market and unlock significant synergy opportunities, potentially boosting shareholder value to AU$1.33 per share. With Betr's latest bid, it seems the battle for PointsBet is far from over.
Now, let's break it down:
The Revised Betr Bid: Betr tabled an AU$360 million proposal on April 29. This package includes AU$260 million in cash and AU$100 million in Betr shares. The deal also includes selling PointsBet's Canadian operations to Hard Rock Digital, pending approval.
Synergy and Funding: Betr predicts over AU$40 million in annual synergies and asserts these moves would greatly increase shareholder value. To finance the takeover, Betr secured a AU$130 million equity raise and a AU$120 million acquisition facility from National Australia Bank.
Opposition to MIXI: Betr plans to use their 19.9% stake to vote against MIXI's existing AU$353 million bid. They argue that their offer offers greater funding certainty and synergy realization compared to MIXI's proposal.
Comparison to MIXI's Bid:
| Aspect | Betr's Proposal | MIXI's Proposal ||-------------------|-----------------------------|-----------------------------|| Value | AU$360 million AUD | AU$353 million AUD || Structure | Cash, equity, asset sale | Undisclosed (likely all-cash) || Synergies | AU$40M+/year claimed | Not specified || Impact | Targets AU$1.33/share | Likely lower due to no asset sale || Funding | Backed by NAB and equity raise| Presumed fully funded |
With Betr as the largest shareholder and MIXI's proposal facing uncertainty, the battle for PointsBet is far from over. PointsBet shareholders will vote on MIXI's bid in June 2025 unless Betr's offer progresses first. The stakes are high, and Betr seems ready to swing for the fences.
Betr's latest revised bid, worth AU$360 million, encompasses AU$260 million in cold, hard cash and AU$100 million in Betr shares. This deal also includes selling PointsBet's Canadian operations to Hard Rock Digital, subject to approval.
Betr projects over AU$40 million in annual synergies with this move, believing it would significantly increase shareholder value. To finance the takeover, Betr secured a AU$130 million equity raise and a AU$120 million acquisition facility from National Australia Bank.
In contrast, MIXI's bid, valued at AU$353 million, reportedly offers an all-cash deal with undisclosed synergies. If approved, PointsBet shareholders will vote on MIXI's bid in June 2025, but this may change If Betr's offer progresses first.
With Betr as the largest shareholder, the battle for PointsBet continues, as both bids aim to create substantial value for shareholders. The stakes are high, and Betr seems prepared to fight for control.
