Betr Confirms Intention To Sell Off PointsBet Canada as Part of Takeover Bid
With PointsBet Canada squarely in the crosshairs, the back-and-forth industry pickleball match between Betr and MIXI for ownership of Australia-based igaming provider PointsBet took another turn.
Betr's Updated PointsBet Offer
The Australian igaming operator Betr Entertainment Ltd., which owns 19.6% of all PointsBet shares, increased its offer on Wednesday to 3.81 Betr shares for every 1 PointsBet share held. According to the company, this is equivalent to AU$1.22 per PointsBet share (based on a $0.32 Betr share price), which is more than the Japan-based entertainment company MIXI's most recent takeover offer, which is AU$1.20 cash per PointsBet share.
According to the release, Betr highlighted the "significant value creation" that would result from the merger of the two businesses ($44.9 million in anticipated annual cost synergies), which, if realized, would amount to up to $0.67 each PointsBet share.
PointsBet Canada Sale Part of Takeover Bid
"The combination of the Offer Consideration (based on a value of $1.22 per PointsBet share) and the value of the cost synergies (estimated at up to $0.67 per PointsBet share) equate to up to $1.89 in potential value per PointsBet share,” the statement read.
According to Betr, this makes its offer better than the MIXI bid. Yesterday, MIXI revised their offer, which is still at AU $1.20 per share. The new offer simply needs the support of 50% of PointsBet owners. According to reports, MIXI has already received 17% of the vote.
"This is just the beginning of the value creation journey we envisage for Betr and PointsBet Shareholders for the Combined Business," Betr added in the statement released on Wednesday. Importantly, PointsBet shareholders can also profit from the advantages of scale in a rapidly consolidating market, as well as the extra longer-term value upside and potential re-rating from the Betr management team's unmatched track record of success.
MIXI Enhances the Most Recent Bid
The board of PointsBet have been urging shareholders to approve the MIXI offer. Regarding the most recent Betr offer, a statement released by PointsBet management yesterday advised stockholders to do nothing.
All of this has significant ramifications for Canada. The sale of PointsBet Canada to Hard Rock Digital is a significant component of the Betr. When that igaming market launches in 2026, PointsBet Canada, which already holds a license and operates in Ontario, plans to apply for a license to operate in Alberta.
"We have received a non-binding proposal from Seminole Hard Rock Digital, LLC to acquire certain assets which relate to PointsBet's Canadian operations, subject to various conditions precedent," a Betr news release dated April 29 confirmed. If all goes according to plan, Hard Rock will pay Betr US $29.6 million for PointsBet Canada and concentrate just on the Australian market.
Directors of PointsBet Suggest MIXI Offer
The Ontario igaming license and operations, all Canadian customer databases and intellectual property, any additional Canadian provincial licenses or applications, and Canadian-specific technology assets and platforms would all be part of the divestment, according to Betr's most recent bidder statement.
According to a senior industry insider with ties to the business, Hard Rock Digital has started the application process for an Ontario igaming license, as Casino.org has previously reported. The public's access to the Alcohol and Gaming Commission of Ontario's online license database does not yet include that information.
The AGCO has already approved MIXI's planned acquisition offer for PointsBet. The Canadian operations will not be sold by MIXI.
According to a Hard Rock Digital representative who spoke to Casino.org, the corporation has not yet commented on events in Ontario.
