PointsBet favours improved US$225m takeover bid by Fanatics Betting and Gambling
The board of Australian online bookmaker PointsBet Holdings (ASX: PBH) has unanimously favoured an improved takeover bid of US$225 million by Fanatics Betting and Gaming (FBG), representing a 50% increase on its first offer.
The bid comes nine days after PointsBet made the decision to engage with sports gambling powerhouse DraftKings on a US$195 million non-binding proposal to acquire its US businesses.
PointsBet facilitated a due diligence process to allow DraftKings to develop its non-binding proposal into a binding offer by 27 June however the binding offer did not eventuate.
The board of PointsBet determined FBG’s improved bid to be superior in terms of pricing and certainty of being able to be completed on a timely basis.
At the time of DraftKings’ proposal, FBG said it was “highly sceptical” of the deal and believed it was an attempt to slow down its own transaction.
FBG’s original offer was pitched at US$150 million and was designed to boost its presence in sports gambling.
The improved bid continues to incorporate a two-stage completion, split into payments of US$175 million (including the full US$75 million increase in headline cash consideration) and US$50 million.
PointsBet chairman Brett Paton said it remained a compelling offer.
“The improved proposal delivers a 50% increase to the acquisition price originally agreed with FBG… it provides a superior price plus certainty,” he said.
“The offer to “front end” the additional consideration is an element which we regard as a welcome and significant benefit to our shareholders.”
Distribution of capital
Mr Paton said the distribution of capital is expected to be approximately A$1.39 to A$1.44 per share, and will be made over two tranches following each completion payment.
PointsBet will commence facilitating the proposed distribution in the coming months, with the first tranche of approximately A$1.00 per share expected to be paid in mid-September.
Shareholders are expected to vote in favour of FBG’s improved takeover bid at an extraordinary general meeting this week.