BlueBet Remains Confident in Its Bid for PointsBet Amidst Rival Offer
Australian betting company BlueBet remains determined to acquire PointsBet, despite competing interest from the Japanese firm MIXI. BlueBet CEO Andrew Menz has expressed confidence in the company’s chances, highlighting positive discussions with PointsBet’s shareholders.
BlueBet Continues to Contest MIXI’s Cash Proposal
Despite PointsBet’s board selecting MIXI’s AU$353 million ($222.5 million) cash bid, BlueBet continues to challenge this offer, presenting its own proposal, which combines both cash and stock. While PointsBet rejected BlueBet’s initial bid, the Australian company stresses the advantages of its offer, which provides shareholders the potential for long-term growth alongside immediate value. This structure contrasts with MIXI’s all-cash offer.
BlueBet’s push for PointsBet follows its recent acquisition of Australian betting operator TopSport. Menz praised the integration of TopSport’s customers into BlueBet’s Betr platform, calling the acquisition a strategic move that enhances the company’s market standing. This deal also showcases how future mergers could successfully work for BlueBet.
The company saw the expected cost savings from the TopSport acquisition within just 55 days, demonstrating its ability to effectively handle large deals. TopSport’s former CEO, Tristan Merlehan, now serves as BlueBet’s Chief Trading Officer.
Long-Term Value for PointsBet Shareholders
PointsBet, which operates in Australia and Canada, is currently weighing two competing buyout offers. While the board is leaning toward MIXI’s bid, BlueBet believes its offer holds more value in the long run. Its mixed cash-and-stock proposal allows PointsBet shareholders to maintain a stake in the company, offering them potential for growth in the future.
BlueBet has received support from key PointsBet investors, including Wilson Asset Management and Pendal, and has secured AU$160 million ($100.9 million) in equity commitments, along with AU$100 million ($63.1 million) in debt financing to back its bid.
As PointsBet shareholders prepare to vote on MIXI’s offer next month, BlueBet remains hopeful that its proposal will be reconsidered. The company sees acquiring PointsBet as a major growth opportunity and believes its offer presents the best deal for PointsBet shareholders, both in terms of immediate value and long-term potential.