Australian bookmaker PointsBet on Tuesday welcomed stronger disclosure requirements imposed on rival Betr Entertainment after its unsolicited all-scrip takeover offer, saying the revisions would give shareholders greater clarity.
The move follows undertakings given by Betr to Australia’s Government Takeovers Panel, which prompted the withdrawal of an earlier shareholder meeting on a selective buy-back and the release of a replacement bidder’s statement with the corporate watchdog Australian Securities and Investments Commission (ASIC).
The Takeovers Panel said it had declined to conduct proceedings on an application from Betr, which had argued that PointsBet’s backing of a rival cash offer from MIXI Australia was unacceptable.
The panel found shareholders had the opportunity to assess both proposals and rejected Betr’s concerns over a confidentiality deed between PointsBet and MIXI.
Betr recently raised its offer—an unsolicited, conditional, all-scrip bid valuing PointsBet at approximately AU$1.35 ($0.84) per share—PointsBet’s board continues to unanimously recommend the rival AU$1.20 ($0.75) per share all-cash offer from MIXI.
PointsBet now states that the revised filing provided more detail on the risks and uncertainties of Betr’s offer, and made clear there was no certainty that the buy-back would proceed.
‘The Replacement Bidder’s Statement more clearly outlines the details of the unsolicited offer and makes it clear that shareholders should not place reliance on the proposed buy-back’, PointsBet said.
The company added it would shortly publish its formal response, urging shareholders to take no action until then.
PointsBet’s board continues to back a rival takeover bid from Japanese tech group MIXI, which already holds a 36.7 percent stake in the bookmaker.
Each director has accepted the MIXI offer, which the board recommends shareholders support in the absence of a superior proposal.
