Betr Resumes Fight for PointsBet with All-Scrip Offer

As the fight for PointsBet heats up, Betr Entertainment unveiled a new all-scrip offer, reasserting its claim that potential synergies would result in a higher shareholder value than the MIXI proposal.

Betr Says Its Offer Is a Superior Proposal

Shortly after suggesting that PointsBet didn’t act in good faith in choosing MIXI’s acquisition proposal, Betr returned with a new offer. In a letter to PointsBet shareholders, Betr, which holds a significant stake in the Australian sportsbook, reiterated a potential value of over AUD 400 million.

Matt Tripp, Betr’s chairman, expressed confidence in his company’s proposal and reassured other shareholders that his team had not overestimated the potential synergies’ value, as PointsBet had previously suggested.

I am confident that this will create enhanced shareholder value for shareholders of PointsBet, of which betr is the largest, with our company holding 19.9% of the shares in PointsBet.

Matt Tripp, chair, Betr

Synergies Could Amount to AUD 47.5M

In his letter to other shareholders, Tripp said that Betr’s independent due diligence has been carried out by leading firms Ernst & Young, Deloitte, and Arnold Bloch Lieber. All three firms have conclusively confirmed that potential synergies of excess of AUD 40 million, in line with Betr’s earlier promises.

In fact, the advisers upgraded their verified synergy estimates from our AUD 41.6 million to AUD 47.5 million, giving us great confidence in our ability to deliver in line with our plan.

Matt Tripp, chair, Betr

Tripp concluded that the potential capitalized value of these synergies alone could exceed AUD 400 million and therefore constitutes a superior proposal.

Betr Updates Its Offer

In addition to reassuring its confidence in the value of projected synergies, Betr updated its offer, submitting an all-scrip proposal. Under this deal, Betr will offer 3.81 Betr shares for each PointsBet share, which equates to AUD 1.22 per PointsBet share.

Betr added that it intends to facilitate a “selective buy-back of betr shares issued to PointsBet shareholders,” allowing them to receive AUD 1.22 for each PointsBet share instead. This buyback offer will be capped at AUD 180 million, unless other conditions are fulfilled, allowing Betr to increase the cap to AUD 200 million.

Tripp added that, unlike the MIXI proposal, this offer will not be subject to any minimum acceptance condition, providing a higher degree of certainty to PointsBet shareholders.

We have crafted this offer based on what we have heard from PointsBet shareholders – providing an accelerated path to cash consideration for shareholders seeking immediate liquidity, while preserving the opportunity for you to participate in long-term value creation.

Matt Tripp, chair, Betr

Tripp reiterated Betr’s intention to vote against MIXI Australia’s proposal and encouraged other shareholders to do the same. He asserted that MIXI’s all-cash offer “fails to reflect the true value and potential” of their investment.