Betr Takes the Lead in PointsBet Takeover Race with ‘Superior’ Offer
Betr Entertainment has taken a decisive step forward in the race to acquire PointsBet, after the latter declared the digital wagering company’s offer as “superior.”
In a statement released Monday, PointsBet said its board, guided by external advisers, reached the conclusion and is now proposing mutual due diligence with Betr. This due diligence process will begin in phases, initially focusing on the value of synergies and the details of Betr’s scrip offer. In Australia, a “scrip” offer refers to a deal where shares are used as partial or full payment instead of cash.
Betr first submitted its AU$360 million (US$231 million) bid in February, prior to its rebrand from BlueBet. The offer includes a cash component of AU$240 million to AU$260 million, plus scrip valued at between AU$100 million and AU$120 million. Betr also identified potential synergies of at least AU$40 million per year.
Despite this development, PointsBet emphasized that shareholders are not required to take any action at this stage, with further updates to follow.
Where Does This Leave MIXI?
While Betr’s offer has been deemed “superior,” PointsBet has not withdrawn its support for the competing proposal from MIXI Australia. An independent expert continues to evaluate the MIXI bid, which was also made in February.
Under MIXI’s scheme arrangement, shareholders would receive AU$1.06 per share — a 27.7% premium over the closing price on 25 February — valuing the deal at approximately AU$353 million. The PointsBet board had previously approved this proposal and continues to recommend it, subject to the absence of a formally superior bid and a favorable review by the independent expert.
MIXI, the Australian arm of Japanese digital entertainment group MIXI Inc., reportedly holds over JP¥100 billion (AU$1 billion) in cash and deposits, according to its December balance sheet.
Potential Impact of a Betr Acquisition
If PointsBet proceeds with the Betr offer, it could lead to a partial restructuring of the company.
Sources familiar with the situation suggest that Betr may look to divest PointsBet’s Canadian business to sharpen its focus on core Australian operations. In April, Betr confirmed receiving a non-binding acquisition proposal for PointsBet Canada from Hard Rock Digital. More recently, reports indicate that Hard Rock has applied for an online gambling licence in Ontario, possibly in anticipation of such a deal.
However, a sale of the Canadian division hinges on Betr completing the full acquisition of PointsBet.
With the board’s acknowledgment of Betr’s offer as “superior” and strategic moves in motion, the momentum in this high-stakes takeover battle now appears to be firmly with Betr.