BlueBet Stays Confident About Buying PointsBet Despite Competing Offer

Australian betting company BlueBet keeps pushing to buy PointsBet even though Japanese firm MIXI wants it too. BlueBet CEO Andrew Menz feels good about their chances, saying talks with PointsBet shareholders have gone well overall.

BlueBet Challenges PointsBet’s MIXI Deal, Emphasizes Strength of Its Own Offer

The company still wants to make the deal happen even after PointsBet’s board said no to their first offer and picked MIXI’s AU$353 million ($222.5 million) cash-bid instead. BlueBet has hit back by highlighting the upsides of its own offer, which mixes cash and stocks. This setup lets shareholders gain from the company’s growth down the road.

BlueBet’s push for PointsBet comes after it bought Australian betting operator TopSport. BlueBet brought TopSport’s customers into its Betr platform, and Menz praised how well this went. He called the purchase a smart move that boosts the company’s market standing and shows how future mergers could work.

The company said it saw the expected cost savings from the TopSport deal in just 55 days, showing it can handle big purchases well. TopSport’s old CEO, Tristan Merlehan, now works at BlueBet as chief trading officer.

BlueBet Promises Long-Term Value for PointsBet Shareholders

PointsBet, which runs operations in Australia and Canada, has two competing buyout offers on the table. Its board leans towards MIXI’s proposal. However, BlueBet argues that its offer gives better value in the long run by letting shareholders keep a stake in the company.

To win over investors, BlueBet highlights that its bid gives shareholders a choice to get a mix of cash and stock. MIXI’s offer, on the other hand, pays in cash. The Australian company also claims its offer beats MIXI’s per-share price.

BlueBet has gained support from key PointsBet investors, including Wilson Asset Management and Pendal. The company has also taken action to get the needed funds for its offer, setting up AU$160 million ($100.9 million) in equity promises and working to secure AU$100 million ($63.1 million) in debt funding.

As PointsBet shareholders get ready to vote on the MIXI offer next month, BlueBet still hopes that the company will think about its proposal again. BlueBet sees buying PointsBet as a big chance to grow and feels sure it can bring PointsBet into its business. Menz said again that BlueBet is ready to go ahead with its offer and thinks it gives PointsBet shareholders the best deal, both for quick value and for long-term growth.