PointsBet has rejected BlueBet’s “unfunded” takeover proposal, which it said contained key deliverables that were “uncertain.”
While not confirming its acceptance of a different offer from Japanese company Mixi, PointsBet has for now turned away from BlueBet, which must consider a new offer or walk away from a deal.
BlueBet said its offer had a combined equity value of between AU$340m and $360m, firstly through a cash pool of between $240m and $260m.
A scrip consideration of between $100m and $120m would also be included, which BlueBet said would lead to at least $40m in synergies annually.
However, PointsBet said the proposal “could not reasonably be expected to lead to a superior proposal” to the one submitted by Mixi.
“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,” the company said.
It 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.
Mixi’s is an offer of $352m to acquire all of the shares in PointsBet through a scheme of arrangement.
The company requires 75 per cent of PointsBet shareholders to approve the move ahead of potential regulatory approvals as well.
Mixi said that alongside its Digital Entertainment segment offering mobile gaming and its Lifestyle segment, it has made sports betting and spectator sports a “focus area” and has been “striving to expand this sector.”
Mixi had not commented on the developments at the time of writing.
In BlueBet's half-year results published on Thursday, BlueBet CEO Andrew Menz said his company's offer is "materially superior to the proposal recommended by the PointsBet board."
"We will release further details of our proposal in the coming days.”
