Takeovers Panel Blocks Betr’s Latest Bid for PointsBet

Betr’s Pursuit of PointsBet Faces Regulatory Hurdles

Betr has been actively attempting to acquire PointsBet, a company specializing in sports betting operations in Australia and Canada. Despite their persistent efforts and recent bid increases, Betr’s latest offer has been put on hold by the Australian Takeovers Panel, which raised concerns about the adequacy of the disclosures in the proposal.

Contrasting Approaches: Betr vs. MIXI in the Battle for PointsBet

Betr and MIXI Australia have taken different paths in their attempts to win over PointsBet. MIXI’s strategy centers on offering immediate monetary value, while Betr emphasizes the potential future benefits derived from synergistic opportunities. Betr currently holds nearly a 20% stake in PointsBet and previously succeeded in blocking one of MIXI’s earlier bids. However, MIXI responded with an all-cash, off-market offer, which has gained more favorable consideration from PointsBet’s board compared to Betr’s offers based on shares and synergy promises.

Despite PointsBet’s management declining Betr’s past proposals and disputing the claimed superiority and synergy benefits, Betr has persistently raised its offer to sway the company’s shareholders.

Takeovers Panel’s Intervention and Impact on Betr’s Bid

The latest proposal from Betr suggested exchanging 4.22 of its shares for each PointsBet share, effectively valuing PointsBet’s shares at AUD 1.35. In contrast, MIXI’s cash offer amounts to AUD 1.20 per share. PointsBet lodged a complaint citing concerns that Betr’s bid included a selective buyback option worth AUD 80 million. This provision was seen as a form of inducement aimed at certain shareholders, potentially breaching the minimum bid price regulations by artificially boosting the share price at a critical valuation period.

The Australian Takeovers Panel responded by issuing an order that temporarily bars Betr from distributing its bidder’s statement to PointsBet shareholders. This restriction will remain in place until further notice, resolution of related proceedings, or for a maximum of two months from the date of the order.