Betr Entertainment has upped its offer to purchase 100% of PointsBet (a popular online casino and betting brand), and could lead to a domino effect in the online betting marketplace.
The operator currently owns 20% of PointsBet and is the largest shareholder in the company. However, in an effort to fend off a potential bidding war with Japanese digital entertainment firm MIXI, the operator reportedly intends to purchase the remaining outstanding stock available.
The offer is reportedly worth roughly $320 million CAD and includes over $230 million CAD in cash.
“Our offer represents a clearly superior offer for PointsBet shareholders to realize significant value," said Betr’s Chairman Matthew Tripp. "We have fully addressed the concerns raised by PointsBet in its letter to shareholders on 3 April, including enhancing our funding certainty, synergy realization, and due diligence timing."
"Our proposal is supported by materially enhanced funding security, and as the largest shareholder in PointsBet, we now intend to vote our holding against the MIXI proposal."
The Proposal in Question
That MIXI proposal in question, announced back in February, would see an offer for roughly $312 million CAD and features broad support among PointsBet’s Board. Speculation has emerged, however, that efforts could be made to have the deal halted.
“As the largest shareholder in PointsBet, we now intend to vote our holding against the current MIXI proposal, reducing its likelihood of success,” Tripp added in a statement.
PointsBet will need the support of greater than 50% of shareholders voting and a supermajority of 75% of shares cast to complete the MIXI deal.
PointsBet Canada Assets to Move to Hard Rock
In conjunction with the deal, Betr would also sell PointsBet Canada’s assets to Hard Rock Digital, which currently does not have a presence in the regulated Ontario Marketplace.
Hard Rock Bet is most prominent in Florida, where it boasts a monopoly on online sports betting in the state. The parent company also holds an office in Toronto.
“Betr has tested the North American market and considers this divested represents value for PointsBet Shareholders,” the company said in a statement. “Critically, the divestment ensures that the combined business is laser-focused on the highly attractive Australian wagering market.”
The full details of the deal, according to details from Betr, would see the National Australia Bank fund the cash part of the takeover, which agreed to a $120-million acquisition financing facility as well as a proposed deal with Seminole Hard Rock Digital for PointsBet’s Canadian Assets.
Interestingly, the deal also comes merely a month after the U.S. side of PointsBet’s assets were sold to Fanatics.
Handshake Stock photos by Vecteezy
