SYDNEY: Bett Entertainment Limited (ASX:BBT) announced a revised proposal Tuesday to acquire 100% of PointsBet Holdings Limited in a deal valued at $360 million, offering a mix of cash and shares. The move aims to create a stronger competitor in Australia’s wagering market.
The proposal includes $260 million in cash and $100 million in Bett Entertainment shares, providing PointsBet shareholders with an implied value of $1.33 per share. Bett Entertainment, already PointsBet’s largest shareholder with a 19.9% stake, said it would vote against a rival bid from MIXI, calling its own offer “superior.”
Bett Entertainment secured $120 million in debt financing from National Australia Bank and plans to sell PointsBet’s Canadian assets to Seminole Hard Rock Digital. The company also launched a fully underwritten $130 million equity raise, with $20 million pre-committed by key executives.
An independent adviser estimated annual cost synergies of over $40 million from merging the two businesses. Bett Entertainment cited its successful integration of TopSport and BlueBet as evidence of its ability to streamline operations.
“This transaction delivers significant value to PointsBet shareholders and positions us as a top-four player in Australia’s wagering market,” said CEO Andrew Menz. Chairman Matthew Tripp added that the proposal addresses previous concerns raised by PointsBet, including funding certainty and synergy realization.
The equity offering, priced at $0.32 per share, includes a $53.5 million institutional placement and a $76.5 million entitlement offer. Proceeds will help fund the acquisition and related costs.
A conference call for investors is scheduled for Tuesday, with results of the institutional offer expected Wednesday.
Bett Entertainment is a digital wagering operator focused on the Australian market, led by industry veterans Matthew Tripp and Michael Sullivan.