Australian wagering firm Betr Entertainment said it will increase its all-scrip takeover offer for PointsBet, raising the pressure on rival suitor MIXI with a deal it claims offers greater value to shareholders.
Betr is now offering 4.219 of its own shares for every one fully paid ordinary share in PointsBet it does not already own. Based on recent Betr share prices, the revised proposal values PointsBet at approximately AU$1.35 ($0.84) per share — above MIXI’s all-cash offer of AU$1.20 ($0.75).
The company said the AU$1.35 ($0.84) valuation is based on Betr’s capital raising price of AU$0.32 ($0.20) per share, as well as the most recent closing price of AU$0.321 ($0.20). Based on the two-day volume-weighted average price of AU$0.31 ($0.20), the implied value is slightly lower at AU$1.33 ($0.82) per PointsBet share.
Betr said it intends to formally increase its offer on or immediately after the official opening of the bid.
‘This is a superior offer for PointsBet shareholders, who would benefit from being part of a stronger, combined business’, the company said in a statement. ‘We remain confident in the strategic rationale of the merger, which will unlock material value and support profitable growth in the Australian wagering market.’
Betr urged PointsBet shareholders to take no action until both offers are open and signaled it expects the PointsBet board to reconsider its support for the MIXI bid.
PointsBet’s board had previously recommended rejecting Betr’s proposal, urging shareholders to accept the open all-cash offer of AU$1.20 ($0.79) per share from MIXI Australia. Betr now hopes the improved terms may prompt a change in stance.
