Betr Entertainment has questioned the conduct of fellow Australian operator PointsBet as it seeks to acquire the Canadian-focused online gambling operator.
After PointsBet confirmed on Monday that it formally rejected Betr’s takeover proposal and entered into an agreement to accept an improved offer from Japanese entertainment giant Mixi, Betr posted a statement on Tuesday in which it predicted that shareholders would reject the Mixi takeover.
Betr, which holds a 19.9% stake in PointsBet, wrote that the company has voiced “strong opposition” to its fellow operator’s decision to proceed with a revised acquisition proposal from Mixi. It confirmed it will vote against the Mixi proposal at the upcoming shareholder meeting, which is scheduled for June 25.
Betr (formerly BlueBet) believes it is not alone in opposing the mooted Mixi deal.
“Based on its unsolicited interactions, Betr is aware that several PointsBet shareholders have indicated significant support for the Betr proposal and we consider it likely that the Mixi proposal will fail,” read part of the statement.
Betr questions whether PointsBet has acted in good faith
Betr said its offer represents a value to PointsBet shareholders of $1.33 AUD per share, in contrast to the Mixi proposal’s $1.20 AUD per share.
Its bid is funded through a mixture of cash and scrip, wherein shares are offered partly or wholly in place of cash. The company acknowledged that its offer is conditional on several factors that cannot be controlled by its board and management.
PointsBet has suggested that Betr’s cost synergy projections have been overstated, a claim that Betr emphatically rejected in its June 17 statement.
“We categorically reject PointsBet’s characterisation of our cost synergy projections as being ‘materially overstated’,” said Betr CEO Andrew Menz. “Our team has deep experience in this field and our unparalleled track record speaks for itself. Having completed detailed bottom-up analysis, our confidence in the benefits of the Betr proposal for PointsBet shareholders has only increased.”
Betr stated that it has consistently attempted to “proactively and constructively engage” with PointsBet during the due diligence process.
“However, [Monday’s] announcement raises questions as to whether PointsBet has acted constructively and in good faith to fully understand the benefits of the Betr proposal for its shareholders,” added the company.
Betr would sell PointsBet Canada assets to Hard Rock
PointsBet offers online sports betting in both its home country of Australia and Ontario’s regulated market. Ontario is the only jurisdiction in which it also operates online casino gaming, a mix it will likely pursue in Alberta when that province launches commercial online gambling next year.
But Betr’s bid includes selling certain PointsBet Canada assets to Hard Rock Digital. Betr Chair Matthew Tripp said earlier this year that those assets largely comprise a player database. None of the parties involved have offered comment on that aspect of the offer to Canadian Gaming Business.
