Australian operator offers a 3.81-for-1 share offer, providing flexibility in short-term cash liquidity to shareholders.

Key points

• Betr sets a 3.81-for-1 share swap, which gives a value of $1.22 for every PointsBet share.
• The offer includes a selective buyback option, limited to $80 million, although it can be increased to $200 million in certain cases.
• If concluded, the deal aims at large synergies and a stronger market position.

Betr Proposes Flexible Takeover Structure with Strategic Market Vision

Betr, based in Australia, has placed an unsolicited offer outside the market; they want to acquire PointsBet by swapping shares at a 3.81-for-1 ratio. The value per PointsBet share in this proposal stands at $1.22, which puts them in direct competition with the current arrangement planned with MIXI.

In this proposal, shareholders who accept can choose a selective share buyback, fixed to a ceiling of $80 million. If Betr obtains at least 90% of PointsBet shares and moves to compulsory acquisition, then this cap can stretch up to $200 million. Notably, there is no minimum acceptance requirement in the offer, which Betr claims provides greater certainty that the deal can proceed.

Betr Makes Strategic Offer for Full PointsBet Ownership, Challenging MIXI Buyout

Matt Tripp, Betr’s chairman, explains that the offer provides important value to shareholders: “We provide value, ensure execution certainty, and give leadership experience needed for delivery.” This offer will require approval from regulators, an agreement from PointsBet shareholders, and must also meet the ASX listing rule conditions. Betr also states that employee incentive awards for PointsBet will not become vested just because of this offer. They predict over $40 million in synergies if they secure full ownership, which is based on findings by a Big Four consultant.

For context, PointsBet says it has received the Foreign Investment Review Board’s approval in Australia for MIXI, a Japanese tech company’s proposed buyout. Betr holds 19.9% of PointsBet and states that it will vote against the MIXI proposal at the next shareholder meeting. Soon, Betr will send a Bidder’s Statement giving complete details and conditions of the offer.