betr Entertainment has issued its fourth supplementary bidder’s statement, addressing PointsBet’s recent assertions and confirming key financial consents and cash flow positions amid its ongoing takeover offer.
- betr confirms NAB consent for selective buy-back and shareholder loan facility
- Disputes PointsBet’s claims of deteriorating cash flow, citing one-off costs
- betr holds $87.4 million cash including prepayments for brand relaunch
- Affirms ability to repay or refinance NAB debt despite competitor speculation
- Fourth supplementary statement lodged and sent to ASIC, ASX, and PointsBet
Context of the Takeover Battle
betr Entertainment Limited (ASX – BBT) has released its fourth supplementary bidder’s statement in relation to its off-market takeover offer for PointsBet Holdings Limited (ASX – PBH). This latest filing serves as a direct response to PointsBet’s second supplementary target’s statement, which raised concerns about betr’s financial position and regulatory approvals necessary to proceed with the bid.
Clarifying Financial and Regulatory Position
Central to betr’s rebuttal is the confirmation that it has secured all required consents from National Australia Bank (NAB) to proceed with a selective buy-back of shares and to enter into a shareholder loan facility. This facility, proposed to be provided by YAST Investments Pty Ltd, will be unsecured and subordinated to NAB’s debt, with all parties consenting to the arrangement. This counters PointsBet’s suggestion that betr lacked the necessary approvals to advance these financial maneuvers.
Addressing Cash Flow Concerns
PointsBet’s statement highlighted betr’s negative free cash flow of over $25 million in FY25, framing it as a deterioration from the previous year. betr disputes this characterization, explaining that the cash flow impact was largely due to one-off costs related to recent acquisitions and the closure of its US operations; factors already disclosed to the market. Furthermore, betr clarifies that a reported $6.5 million cash reduction between June and early September 2025 reflects normal working capital fluctuations rather than operational decline.
Robust Cash Reserves and Debt Management
betr’s corporate cash position stood at a healthy $87.4 million at the end of August 2025, including significant prepayments for its brand platform relaunch. The company firmly rejects PointsBet’s speculation that it lacks the ability to repay NAB debt outside of using funds earmarked for the selective buy-back or by selling PointsBet shares. betr expresses confidence in its capacity to repay or refinance the NAB facility as needed, underscoring financial stability amid the takeover tussle.
Implications for the Takeover Process
This fourth supplementary statement, lodged with ASIC and distributed to ASX and PointsBet, reinforces betr’s commitment to transparency and regulatory compliance. It also signals the company’s determination to counter negative narratives and maintain momentum in its bid for PointsBet. Investors and market watchers will be keen to see how PointsBet responds and whether further disclosures emerge as the offer progresses.
Bottom Line?
betr’s latest statement strengthens its position but leaves key questions about the takeover’s final outcome open.
Questions in the middle?
- Will PointsBet issue a further response to betr’s clarifications?
- How will the market react to the confirmed NAB consents and cash position?
- Could unexpected financial developments impact betr’s ability to complete the takeover?