Regulatory Body Hinders Betr's Recent Attempt to Acquire PointsBet
Australian Takeovers Panel Halts Betr's Bid for PointsBet
The Australian Takeovers Panel has temporarily blocked Betr from distributing its bidder’s statement related to its takeover bid for PointsBet. This intervention followed PointsBet’s allegations that Betr’s disclosure documents were misleading and lacked transparency, specifically regarding an AU$80 million selective buyback scheme and the voting power of Betr’s executive chairman, Matthew Tripp.
The main disclosure issues leading to the Panel’s intervention include PointsBet’s claim that the selective buyback effectively turns an all-stock offer into a quasi-cash deal, potentially breaching corporate takeover rules and minimum bid price regulations. PointsBet also argued that Betr failed to fully disclose critical details about Matthew Tripp’s stake and control, suggesting the acquisition process is not occurring in a fully informed and competitive market.
Betr's latest proposal consisted only of scrip and synergy promises, with an offer of 4.22 of its own shares for each PointsBet share, implying a value of AUD 1.35 per PointsBet share. However, the AUD 80 million selective buyback option in Betr's proposal is considered a clear inducement by PointsBet. The Australian Takeovers Panel has intervened to halt Betr's latest proposal, citing disclosure issues.
Betr has been persistent in its pursuit of PointsBet, despite rejections and denials. Notably, MIXI Australia made an off-market all-cash deal to court PointsBet, offering AUD 1.20 per share. The theoretical returns of the Betr deal are higher, but the PointsBet leadership remains unconvinced. The Australian operator insists that Betr’s announcement of buyback details at a crucial valuation time artificially inflated its share price, in breach of minimum bid price rules.
MIXI has recently been seen as offering more value to PointsBet compared to earlier proposals. Betr owns a 19.6% stake in PointsBet, and the status is that the Takeovers Panel’s intervention is an active, interim hold on Betr’s bid documentation to address these alleged disclosure and regulatory breaches, pending further review and rulings. The order from the Takeovers Panel means that Betr will be unable to release its bidder’s statement, under further notice, determination of proceedings, or two months from the date of the order.
PointsBet operates sports betting in Australia and Canada. The ongoing takeover battle between Betr and PointsBet is a significant event in the Australian sports betting industry, with the outcome potentially reshaping the competitive landscape. The Australian Takeovers Panel’s intervention adds an extra layer of complexity to the situation, creating uncertainty for shareholders and escalating regulatory scrutiny of the takeover battle.
- The disclosure issues surrounding Betr's proposed takeover of PointsBet include concerns about the selective buyback scheme, Matthew Tripp's stake and control, and potential breaches of corporate takeover rules and minimum bid price regulations, leading the Australian Takeovers Panel to intervene and halt the latest proposal.
- The ongoing takeover battle between Betr and PointsBet, involving sports betting companies in Australia, not only has the potential to significantly reshape the competitive landscape within the industry but also escalates regulatory scrutiny with the Australian Takeovers Panel's intervention, adding additional complexity and uncertainty for shareholders.
