Entertainment <\/p>\n
Sports betting company Betr Entertainment<\/strong> has unveiled a revised takeover proposal for competitor PointsBet<\/strong>. The former company, which just became PointsBet\u2019s largest shareholder, is now seeking to complete its buyout.<\/p>\n Earlier this week, Betr acquired a 19.9% stake<\/strong> in PointsBet, immediately positioning itself as one of the latter company\u2019s biggest shareholders. However, Betr is not the only party interested in PointsBet since rival MIXI <\/strong>has likewise proposed to acquire PointsBet.<\/p>\n In an Australian Stock Exchange filing, Betr proposed to acquire the remaining PointsBet shares via a Scheme of Arrangement. The proposal values PointsBet at $360 million<\/strong>, which would consist of $260 million in cash<\/strong>, as well as $100 million in betr scrip<\/strong>.<\/p>\n According to the announcement, the proposal delivers \u201csignificantly greater value\u201d to PointsBet shareholders than the current MIXI proposal. Per this deal, synergies could amount to over $40 million a year, delivering a potential value outcome of $1.33 per share<\/strong> for PointsBet shareholders.<\/p>\n In the wake of the announcement, PointsBet\u2019s shares surged, reaching AUD 1.08 as of the time of this writing.<\/p>\n Betr, on the other hand, is now looking to raise $130 million to fund its recent stake in PointsBet, as well as a part of the full acquisition.<\/p>\n Betr officials commented on the proposal, with the company\u2019s chair, Matthew Tripp<\/strong>, calling the offer a \u201cclearly superior proposal\u201d to the one put forward by MIXI. He asserted that the deal would raise significant value for PointsBet\u2019s shareholders and added that all concerns have already been addressed.<\/p>\n Our proposal is supported by materially enhanced funding security, and as the largest shareholder in PointsBet, we now intend to vote out holding against the current MIXI proposal, reducing its likelihood of success. I am confident PointsBet shareholders will recognize the benefits of our proposal as we work toward again becoming leaders in the Australian wagering market.<\/p>\n Matthew Tripp, chair, Betr<\/cite><\/p><\/blockquote>\n Betr\u2019s chief executive officer, Andrew Menz<\/strong>, likewise commented on the deal and what it means to Betr. He noted that the company is looking to become the \u201cclear number four wagering player\u201d in Australia, occupying a market share of 10-15%. He believes that the synergies with PointsBet will make this goal possible.<\/p>\n We are well-positioned to realize these benefits rapidly, with the bulk of the synergies unlocked through a complex migration to a single brand and app.<\/p>\n Andrew Menz, CEO, Betr<\/cite><\/p><\/blockquote>\nBetr Challenges MIXI\u2019s Proposal<\/h2>\n
The Synergies Between the Companies Will Result in Greater Profitability<\/h2>\n
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