Betr Proposes a Fresh Strategy to Rejoin PointsBet's Competition
In a recent turn of events, sports betting company Betr has resumed negotiations with PointsBet for an all-share takeover, offering AUD 1.89 per share to PointsBet shareholders. This revised bid surpasses MIXI's earlier rejected offer of AUD 1.20 per share.
The earlier rejection of the MIXI proposal was a significant factor in Betr's negotiations with PointsBet. Initially, PointsBet seemed to favour the MIXI proposal due to concerns about Betr's projected synergies. However, Betr's latest offer is based on the forecasts of multiple experts, according to the company, and is considered a superior proposal to MIXI's offer.
Betr asserts that this offer marks the start of the value creation journey for both Betr and PointsBet shareholders in the combined business. The company believes that the deal, if successful, could potentially bring up to AUD 44.9 million in synergies to PointsBet shareholders.
It is important to note that Betr's offer is all-scrip, meaning PointsBet shareholders would receive Betr shares instead of cash. In contrast, MIXI made an all-cash offer in response to Betr's initial all-share takeover proposal.
The MIXI proposal received all necessary regulatory approvals but failed to reach the required shareholder vote threshold. The proposal was later rejected due to insufficient shareholder support after a recount, leaving the door open for Betr's revised bid.
Interestingly, the rejection of the MIXI proposal was partly due to a technical failure that misrepresented the vote results, a fact that Betr criticised the PointsBet leadership for.
Betr's latest offer blocks MIXI's proposal by leveraging its shareholding in PointsBet. The company's revised bid now stands as the highest offer on the table, potentially paving the way for a successful takeover.
As the negotiations continue, both Betr and PointsBet shareholders eagerly await the outcome, with the potential for significant value creation in the combined business.
The MIXI proposal's rejection due to insufficient shareholder support opened up opportunities for Betr, leading to negotiations for an all-share takeover of PointsBet. Betr's latest offer, based on expert forecasts, is not only a revised bid but also considered a superior proposal to MIXI's all-cash offer, promising potential synergies worth up to AUD 44.9 million to PointsBet shareholders in the combined business.
