Betr Entertainment has launched an all-stock, off-market takeover bid for all outstanding PointsBet ordinary shares not already in its possession. The offer proposes a share exchange ratio of 3.81 Betr shares for each PointsBet share.
This represents a valuation of approximately AU$1.22 (US$0.80) per PointsBet share, based on a Betr share price of AU$0.32. This is slightly more advantageous than Mixi Inc.’s competing cash offer of AU$1.20 per share.
Betr, which currently owns 19.6% of PointsBet, asserts its offer is superior. The company emphasizes the opportunity for shareholders to participate in the projected growth and value creation of the merged entity, the “Combined Business.”
The proposed merger is projected to yield AU$44.9 million in annual cost savings. Realizing these synergies could add an estimated AU$0.67 to the value of each PointsBet share. These cost reductions are intended to enhance the profitability of the combined company.
PointsBet shareholders recently approved Mixi’s AU$402 million takeover bid following competing offers. However, Betr argues that factoring in both the offer valuation and projected synergies results in a total estimated value of up to AU$1.89 per share. Betr further suggests that shareholders could also benefit from future expansion and economies of scale following the merger.
