BlueBet Holdings Limited (ASX: BBT) has upped the ante in the race to acquire PointsBet Holdings Limited, putting forward a superior proposal that outshines the current offer from Japanese gaming company MIXI.
BlueBet’s bid values PointsBet at $1.28 per share, a 45% premium when factoring in expected $40 million in cost synergies—a major advantage over the all-cash $1.06 per share MIXI offer. If successful, the deal will create a leading Australian-owned digital wagering operator, giving investors a front-row seat to a rapidly consolidating market.
What’s on the Table?
- $40M in Cost Synergies: The combined business will benefit from a single brand, app, and tech platform, reducing overheads and improving efficiency.
- Choice for Shareholders: PointsBet investors can choose between cash, scrip (shares in the new company), or a mix of both—unlike MIXI’s all-cash offer, which leaves them out of future growth opportunities.
- Stronger Market Position: The combined entity would have an annual turnover of ~$4 billion and ~10% market share, making it Australia’s only ASX-listed, pure-play digital wagering business.
- Earnings Growth: The deal is expected to be highly earnings-per-share (EPS) accretive for existing BlueBet shareholders and help the company reach its 10%-15% market share target faster.
Funding and Confidence in the Deal
BlueBet has already lined up the financing to back its bid, including:
- $160 million in equity underwriting support
- $100 million in debt funding (well advanced)
This financial backing signals strong confidence in the deal’s feasibility and future success.
Leadership’s Take
BlueBet Chairman, Matthew Tripp, is bullish on the offer:
“Our proposal is clearly superior, and we’ve been overwhelmed by support from investors who see the value in it. The MIXI offer leaves too much on the table, while our deal creates a true Australian challenger in the wagering market.”
CEO Andrew Menz emphasized the benefits of flexibility:
“Shareholders can mix and match between cash and scrip, with those opting for scrip gaining exposure to a potential $40 million synergy prize and future growth from market consolidation.”
What’s Next?
With PointsBet shareholders now weighing their options, BlueBet’s bid raises serious questions about whether MIXI will improve its offer. Given the expected synergies, growth potential, and clear strategic fit, BlueBet’s proposal may be hard to ignore.
