Betr Entertainment increases takeover bid after rejected offer from PointsBet

Betr Entertainment has upped its all-scrip bid to take over PointsBet after its latest proposal was rejected last week.

Betr announced on July 30 that it would increase its off-market, all-scrip takeover bid for PointsBet to $1.35 in value per share. The offer would aim to buy out all of the bookmaker’s shares, giving Betr the majority holding. That means that every PonitsBet shareholder who accepts the offer will get 4.219 shares for every PointsBet share already held, breaking down to $1.35 per PointsBet share.

“The improved offer is superior to MIXI’s offer of $1.20 cash per PointsBet Share,” said Betr in the financial statement. “Betr continues to firmly believe in the combination rationale and that we can create material value for PointsBet and Betr shareholders by integrating these two businesses, allowing us to profitably
grow our share of the Australian wagering market.”

PointsBet shareholders are advised not to take any action until both offers are open, with the offer now with the PointsBet Board for consideration. Betr has made the revised offer with the job that the board will change its recommendation for shareholders to accept the Betr offer, rather than the MIXI Offer.

This comes after there has been a flurry of interest in the Australian bookmaker, with multiple companies expressing interest in buying out the company shares. The two leading bidders are MIXI and Betr, with the latter first making a multi-million dollar bid back in April.

While PointsBet initially recommended the deal, with tentative indications that it was the superior one on the table, the board ultimately recommended that shareholders should not take the offer, recommending MIXI’s offer instead. This has brought Betr back to the table with a fresh bid one week on, with the various companies now waiting to see where the PointsBet Holdings board will land on their current decision.

Featured image: PB

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