Betr has improved its offer to take over online gambling operator PointsBet as it tries to ward off a potential bidding war with the Australian subsidiary of Japanese digital entertainment firm MIXI.
Betr now owns 20% of PointsBet, making it the largest shareholder, and intends to purchase the remaining outstanding stock to take full control. The offer in its entirety is worth an implied equity value of AU$360m (US$230m), which will include AU$260m (US$166m) in cash.
This compares to a bid from MIXI worth AU$352m (US$225m), which Betr plans to use all its shares to vote against.
a transaction would create great scale in the Australian market and also unlock significant synergy
Betr, which merged with BlueBet last year, believes a transaction would create great scale in the Australian market and also unlock significant synergy opportunities.
Its first offer was underwhelming, with PointsBet outlining its concerns in a letter to shareholders at the beginning of April. One of the big problems was doubts over Betr’s ability to finance the transaction and it recommended MIXI’s offer as a result.
The operator has since organized an AU$120m (US$77m) financing facility with the National Australia Bank and received an offer from Seminole Hard Rock Digital, which operates Hard Rock Bet in eight US states, to buy PointsBet’s Canadian business for about AU$30m (US$19m). While PointsBet sold its US assets in April 2024 to Fanatics for US$225m, it held onto its presence in Ontario.
