PointsBet Says Betr Acquisition Bid “Superior”, Putting Canadian Operation in Play

PointsBet Says Betr Acquisition Bid “Superior”, Putting Canadian Operation in Play

The sale of PointsBet’s Canadian business to Hard Rock Digital appears to be progressing toward reality today. 

Betr Proposal “Enhanced” 

In a statement issued this morning, the PointsBet board indicates that it now believes a takeover offer from Betr Entertainment Ltd. “might reasonably be anticipated to result in a Superior Proposal” compared to a rival one proposed by Japanese Entertainment firm MIXI Inc. 

The company has now suggested that a joint due diligence should be carried out with Betr.

"As is customary, this due diligence will be phased. PointBet’s initial focus will be on the value of synergies and Betr scrip, as the implied value of the Proposal for shareholders is heavily dependent on these two elements given that the Proposal contemplates a 57% cash/43% scrip funding mix,” the company said in a statement.

Period of Due Diligence Approaching 

In Australia, a scrip usually denotes shares or stock provided by a company rather than cash. 

Although this morning's announcement appears to favor Betr, the board's stance on MIXI's offer has not changed.

"The PointsBet Board remains committed to, and unanimously recommends, that PointsBet shareholders vote in favour of the MIXI scheme, in the absence of a Superior Proposal and subject to the Independent Expert continuing to conclude that the MIXI Scheme is in the best interests of PointsBet shareholders.”

Betr presently holds 19.9% of PointsBet, positioning it as the largest shareholder in the company. In July 2024, BlueBet Holdings merged with Betr, and BlueBet took on the Betr brand. 

Agreement Reached to Sell PointsBet Canada 

In February, the board of PointsBet released a statement confirming their acceptance of a MIXI acquisition offer. The board was worried that Betr’s offer relied heavily on acquiring debt. 

Recent reports indicated that Betr had enhanced its offer from February, with a new total of AU $360 million (USD $229.2 million), comprising both cash and shares. In April, MIXI put forward a takeover offer of AU $350 million. 

A portion of Betr's new offer includes divesting PointsBet Canada, with Hard Rock as the purchaser. A statement from Betr on April 29 indicated they received a “non-binding proposal from Seminole Hard Rock Digital, LLC for the acquisition of specific assets pertaining to PointsBet’s Canadian operation, pending various conditions precedent.” If the Betr deal in Australia is finalized, Hard Rock would pay PointsBet Canada USD $29.6 million. 

A source within the industry associated with Hard Rock informed Casino.org last week that Hard Rock has submitted an application for an igaming license to the Alcohol and Gaming Commission of Ontario. 

In an email to Casino.org today, the AGCO stated: “We can confirm that Hard Rock Digital has not submitted a registration application to us at this time.” 

Upon being reached out to by Casino.org, a representative for PointsBet Canada stated that the firm had no remarks.