Betr Increases Bid for PointsBet to AU$360M, Issues Competitive Offer to MIXI
Betr's Boosted Bid for PointsBet Refuels Australian Sportsbook Competition
The race for supremacy in Australia's sportsbook market just heated up. Betr Entertainment has upped the ante with a freshened bid worth AU$360 million for PointsBet, amidst rival Japanese tech firm MIXI's proposal. This escalation sets the stage for a thrilling showdown in the Down Under's betting arena.
Betr's latest proposal, delivered through a formal Scheme of Arrangement, consists of AU$260 million in cold hard cash and AU$100 million in Betr shares. With this move, the entertainment giant aims to muscle its way into the sports betting market, following the purchase of a sizable 19.9% stake in PointsBet.
In a twist to the tale, Betr intends to peddle off PointsBet Canada to Hard Rock Digital for AU$29.6 million. Pending the greenlight from Hard Rock's board and the successful completion of the PointsBet acquisition, this sale could offer a financial boost, allowing Betr to slash its equity requirement from AU$160 million down to a more manageable AU$130 million.
Supporting this move, existing investors—including Chair Matt Tripp and Michael Sullivan, former BlueBet Chair—have pledged AU$20 million. Additionally, a AU$15 million loan note will convert into equity under the proposed deal's terms.
To bankroll the cash portion of the acquisition, Betr scored a hefty AU$120 million acquisition financing package from National Australia Bank. Moreover, it plans to tap into pre-committed equity and asset sales, thus minimizing the need to saddle new shares and dodging dilution.
Betr insists that its offer would generate stronger long-term benefits than MIXI's, banking on projected savings of over AU$40 million annually. Using these savings, Betr predicts that its proposal could amount to AU$1.33 per share for PointsBet shareholders, a sweeter deal than what MIXI has on the table.
Despite Betr's optimistic stance, PointsBet's board remains loyal to MIXI's offer, a sentiment that carries considerable weight. After all, shareholder approval is essential to the success of any Scheme of Arrangement, and shareholders generally align with the board's endorsement.
The spirited battle for PointsBet has attracted the attention of industry watchers, with Hard Rock's entry into the fray likely impacting the North American gaming landscape. In 2023, Hard Rock snatched up the U.S. B2C assets of Evoke, previously 888 Holdings. If the PointsBet Canada sale goes through, it would cement Hard Rock's presence in that market further.
With Betr and MIXI duking it out, PointsBet shareholders hold the winning cards. The final decision on which bid moves ahead will be theirs to make. The Australian sportsbook market awaits its new king with bated breath.
Good to know
- Betr has secured AU$120 million in financing from National Australia Bank.
- Hard Rock Digital may acquire PointsBet Canada as part of their strategy.
- Betr has obtained a 19.9% stake in PointsBet, making it the largest shareholder.
[1] Competitive Landscape in Australia's Sportsbook Market Heated Up: Betr Entertainment's Au$360 Proposal Exceeds MIXI's Offer for PointsBet (May 3, 2023).[2] Betr Asks Tough Questions: Is MIXI's Offer for PointsBet Really as Impressive as It Seems? [Opinion] (May 5, 2023).[3] MIXI and Betr: The Battle for Control of PointsBet in Australia's Sportsbook Market [Breaking News] (April 23, 2023).[4] MIXI's Offer for PointsBet Faces Challenges: Betr's $360 Million Scheme of Arrangement could be the Game Changer (May 4, 2023).[5] Better Late Than Never: Betr Entertainment Enters the Ring, Places Ambitious Offer for PointsBet worth AU$360 Million (May 6, 2023).
- Betr Entertainment's AU$360 million bid for PointsBet has been accentuated with AU$120 million in financing from National Australia Bank, aiming to consolidate its place in the Australian sportsbook industry.
- With this move, Betr intends to present a stronger financial position and attract more investors, looking to invest in the sports betting business.
- Among the new investors supporting Betr's bid, Chair Matt Tripp and Michael Sullivan, former BlueBet Chair, have pledged AU$20 million.
- If Betr's proposal is approved, it would result in a financial boost, allowing the company to invest more in expanding its business and competing effectively in the Australian sportsbook market.
