betr Offers 3.81 Shares per PointsBet Share Valued at $1.22 in Takeover

betr’s Strategic Move to Consolidate Australian Wagering

betr Entertainment Limited (ASX – BBT) has announced its intention to make a superior all-scrip off-market takeover offer for PointsBet Holdings Limited (ASX – PBH). The offer proposes an exchange ratio of 3.81 betr shares for each PointsBet share, equating to a value of $1.22 per PointsBet share based on betr’s recent capital raise price of $0.32 per share. This offer is positioned as more attractive than the competing MIXI scheme, promising both immediate liquidity and long-term upside for PointsBet shareholders.

Offer Details and Shareholder Benefits

Central to betr’s proposal is a selective buy-back option, subject to shareholder approval, which will allow PointsBet shareholders who accept the offer to receive cash of $1.22 per share. This buy-back is capped at $80 million but could increase to $200 million if betr secures at least 90% ownership and proceeds with compulsory acquisition. Notably, the offer carries no minimum acceptance condition, a strategic advantage over MIXI’s proposal, providing greater certainty of execution for shareholders.

Value Creation and Synergies

betr highlights the significant value creation potential from the merger, including expected synergies exceeding $40 million under a full acquisition scenario. Independent analysis from a Big Four accounting firm supports these projections. The combined entity aims to leverage industry-leading expertise, a strong board, and an experienced management team to become a dominant player in the Australian digital wagering market.

Governance and Next Steps

betr currently holds a 19.9% stake in PointsBet and has committed to voting against the MIXI scheme at the upcoming PointsBet shareholder meeting scheduled for 25 June 2025. The company will lodge a detailed Bidder’s Statement with ASIC and distribute it to PointsBet shareholders, outlining the offer’s terms and how to accept. Regulatory approvals, including from the Australian Competition and Consumer Commission, and shareholder approvals will be critical milestones before the offer can be completed.

Market Implications

This takeover bid signals a potential consolidation in the Australian wagering sector, with betr positioning itself as a scaled, listed leader. The offer’s structure, combining equity and cash options, aims to balance shareholder preferences for liquidity and growth participation. As the competing MIXI proposal unfolds, the market will closely watch shareholder sentiment and regulatory responses to determine the ultimate direction of PointsBet’s ownership.