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Australian bookmaker Betr (ASX:BBT) insists it has a “clearly superior” proposal to buy up similarly ASX-listed bookie PointsBet (ASX:PBH) when weighed against Mixi and the Japanese giant’s $402 million takeover bid.
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PointsBet opened this week with a clear message of intent: It prefers the Mixi bid to anything Betr has leveraged through takeover negotiations so far.
One reason the PointsBet board leaned towards Mixi was its superpower financing. Stake.com’s billionaire owners are understood to be among those backing Mixi’s major $402 million buy-up assault for the Aussie bookmaker.
Conversely, a sticking point for PointsBet was concerns Betr had overcooked estimates.
Within 24 hours, Betr has come out swinging – and says it’s “clearly superior.”
“We categorically reject PointsBet’s characterisation of our cost synergy projections as being ‘materially overstated’,” Betr chief executive Andrew Menz said, adding Betr has “deep experience” and an “unparalleled track record.”
Betr – already the largest PointsBet shareholder right now with a 19.9% stake – offered $1.33 against each PointsBet share compared to Mixi’s $1.20 bid.
The Aussie bookie will vote against the MIXI proposal at a meeting on June 25.
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“Having completed detailed bottom-up analysis, our confidence in the benefits of the Betr proposal for PointsBet shareholders has only increased,” Mr Menz continued.
“We are highly confident in our ability to deliver the integration and to create $1.33 of value for PointsBet shareholders that elect and receive consideration in line with the funding mix, far exceeding the $1.20 offered by Mixi.”
BBT shares lost -8% yesterday; they’ve dropped another -1.7% to lunch today.
On the other side, PBH has fared a little better, up 0.4% to $1.19.
Join the discussion: See what HotCopper users are saying about both Betr and PointsBet and be part of the conversations that move the markets.
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