The stakes have been raised in the contest for online bookmaker PointsBet with previously-jilted suitor Betr Entertainment trumping a rival offer.
Betr (ASX: BBT) launched a $360 million (US$230 million) cash and/or scrip bid for PointsBet (ASX: PBH) and announced a $130 million capital raising after buying a 19.99% stake in its target on Tuesday.
Betr, whose $220 million offer in June 2022 was rejected, threw down the gauntlet to Japanese technology company MIXI, which has a $353 million proposal on the table.
United States digital sports platform Fanatics purchased PointsBet’s U.S. assets in a $225 million offer in 2023 that prevailed over a proposal from sports technology and entertainment company DraftKings.
Betr said its new offer of $1.20 per share in cash or $1.50 in Betr scrip, or a combination of both, delivered significantly greater value to PointsBet shareholders than the MIXI proposal of $1.06 in cash.
Betr, which earlier announced it had acquired an interest in 19.9% of its target, said it would offer to buy the remaining shares using $181 million of cash and $100 million in scrip.
The cash consisted of $120 million of debt from National Australia Bank and funds from the proposed sale of PointsBet Canada to Seminole Hard Rock Digital for US$29.6 million (A$45 million).
Betr will also raise $130 million in equity through a $53.5 million institutional placement and $76.5 million entitlement offer at 32 cents per share, compared with the closing price on Tuesday of 30 cents, which capitalises the bookmaking bidder at $185.75 million.
Betr Chairman Matthew Tripp said Betr had fully addressed concerns raised by PointsBet about its original offer including enhancing funding certainty, synergy realisation and due diligence timing.
“I am confident PointsBet shareholders will recognise the benefits of our proposal as we work towards again becoming leaders in the Australian wagering market,” Tripp said in an ASX announcement.
Pointsbet shares closed 2.7 cents (2.55%) higher on Tuesday at $1.09, capitalising the company at $360.59 million.




