BlueBet Holdings Ltd (ASX:BBT) Proposes Superior Offer to Acquire PointsBet
Offer Details
BlueBet Holdings Limited (ASX:BBT) has announced a Non-Binding Indicative Offer to acquire 100% of PointsBet Holdings Limited through a scheme of arrangement. The Offer is superior to MIXI’s proposal, providing PointsBet shareholders an illustrative value of $1.28 per share compared to $1.06 under MIXI.
Synergies and Growth Potential
The Offer anticipates over $40 million in cost synergies by integrating into a single brand, app, and technology platform. The combined business is expected to achieve an annualised turnover of approximately $4 billion and a 10% market share, establishing it as Australia’s only ASX-listed pure-play digital wagering operator.
Transaction Structure and Financing
The innovative “mix and match” structure allows PointsBet shareholders to choose between cash, scrip, or a combination thereof. BlueBet has secured underwriting support for a $160 million equity raise and is progressing towards $100 million in debt funding, ensuring confidence in the transaction’s completion.
Executive Comments
Chairman Matthew Tripp stated, “Our Offer clearly represents a superior proposal for PointsBet shareholders to realise significant value. Unsurprisingly, we have been inundated with support for our offer in preference to the MIXI Proposal, which sees PointsBet shareholders leave meaningful value on the table. We are confident in progressing our superior proposal and creating the next great challenger brand in this market.”
CEO Andrew Menz added, “Our innovative transaction structure provides flexibility to all PointsBet shareholders to mix and match between their preferred combination of cash and scrip. Those opting to take scrip will gain exposure to significant potential upside, driven by an expected $40m cost synergy prize and further organic and inorganic growth as we consolidate the Australian wagering market.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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