BlueBet has attempted to clear up what it says are the advantages of its scrip-based offer to acquire PointsBet.
PointsBet, which has also received an all-cash offer from Japanese company Mixi, last week rejected BlueBet’s “unfunded” offer due to key deliverables which it said were “uncertain.”
While Mixi’s offer is an all-cash proposal, BlueBet’s involves a scrip, which allows for the issuing of free shares as opposed to a cash dividend.
In its latest attempt to convince PointsBet shareholders, BlueBet said its offer has a “mix-and-match” transaction structure that “enables PointsBet shareholders to elect to take all cash, all scrip or a combination of both – subject only to scale back mechanisms.”
“The all-cash Mixi proposal denies PointsBet shareholders the opportunity to benefit via the expected AU$40m of cost synergies, market share growth and participation in further consolidation,” the company added.
PointsBet has yet to comment on the fresh detail provided by BlueBet.
It said last week: “The proposal was unfunded, subject to an explicit financing condition and would require BlueBet to both raise $100m in debt and undertake a large upfront capital raising ($160m), the terms of which were uncertain and could materially affect the value ultimately received by PointsBet shareholders.”
PointsBet added that value creation was “heavily dependent” on assumed synergies but that there were “no details or disclosed consideration of any dis-synergies” provided by BlueBet.
PointsBet was also warned off due to the 25 business days it would take to complete due diligence on the proposal.
BlueBet chairman Matthew Tripp said: “Our offer clearly represents a superior proposal for PointsBet shareholders to realise significant value. Unsurprisingly, we have been inundated with support for our offer in preference to the Mixi proposal, which sees PointsBet shareholders leave meaningful value on the table.
“We are confident in progressing our superior proposal and creating the next great challenger brand in this market.”
BlueBet CEO Andrew Menz said: “Our innovative transaction structure provides flexibility to all PointsBet shareholders to mix and match between their preferred combination of cash and scrip.
“Those opting to take scrip will gain exposure to significant potential upside, driven by an expected $40m cost synergy prize and further organic and inorganic growth as we consolidate the Australian wagering market.”
