betr Raises A$130m to Back Superior PointsBet Bid, Secures 19.9% Stake

Capital Raising to Fuel Strategic Acquisition

betr Entertainment Limited (ASX: BBT) has announced a fully underwritten capital raising of approximately A$130 million, comprising a A$53.5 million institutional placement and a A$76.5 million entitlement offer. The proceeds will fund betr’s acquisition of a 19.9% relevant interest in PointsBet Holdings Limited (ASX: PBH) and partially finance a proposed full acquisition via a scheme of arrangement.

The equity raising is priced at A$0.32 per share, representing a premium to recent trading prices, and is supported by major investors including Matt Tripp and Michael Sullivan. Joint lead managers Ord Minnett, Morgans Corporate, and Taylor Collison are underwriting the offer, which is scheduled to close by late May 2025.

A Superior Proposal Amidst Competing Bids

betr has submitted a revised and enhanced proposal to acquire 100% of PointsBet’s shares, valuing the company at an implied equity value of A$360 million. This offer combines approximately A$260 million in cash and A$100 million in betr shares, providing PointsBet shareholders with a flexible mix-and-match option between cash and scrip consideration.

This proposal is positioned as superior to the competing scheme of arrangement backed by MIXI, Inc, offering greater upfront value, tax advantages through CGT rollover on the scrip component, and the retention of an ASX listing for the combined entity. betr’s 19.9% stake, acquired at around A$1.10 per share, makes it the largest shareholder in PointsBet and enables it to vote against the MIXI scheme, complicating the rival bid’s path.

Funding Certainty and Strategic Asset Divestment

To underpin the acquisition, betr has secured a credit-approved $120 million bilateral senior debt facility from National Australia Bank (NAB) with favorable commercial terms, including an interim $35 million facility already committed to support the pre-bid stake build. Additionally, a non-binding proposal from Hard Rock Digital to acquire PointsBet’s Canadian assets for approximately US$29.6 million (around A$45 million) further reduces the funding burden and sharpens the combined entity’s focus on the Australian wagering market.

Synergy Potential and Growth Outlook

betr anticipates realizing over A$40 million in annual pre-tax cost synergies from the combination, driven by customer migration to a single platform, elimination of duplicate roles, and procurement efficiencies. An independent Big Four accounting advisor has validated these synergy estimates, and betr’s management has a proven track record of delivering synergies ahead of schedule, as demonstrated in prior acquisitions such as BlueBet and TopSport.

The combined business is expected to become the fourth-largest wagering operator in Australia, with a clear pathway to inclusion in the S&P/ASX 300 index. This enhanced scale and market position are projected to accelerate growth through organic initiatives and future inorganic opportunities.

Risks and Next Steps

The transaction remains subject to several conditions, including PointsBet board and shareholder approvals, regulatory consents, and successful completion of due diligence. The PointsBet board currently supports the MIXI proposal, and there is no assurance that betr’s offer will be accepted or completed. betr has committed to an expedited due diligence process and is actively engaging with shareholders to build support.

Investors should also consider risks related to regulatory compliance, technology platform reliability, integration challenges, and market competition, all detailed comprehensively in betr’s announcement. The capital raising timetable spans from late April to late May 2025, with retail shareholders eligible to participate in the entitlement offer.