BlueBet Holdings is pleased to provide further detail regarding its Non-Binding Indicative offer to acquire 100% of the shares in PointsBet Holdings  by way of scheme of arrangement.

The offer is clearly superior to that offered by MIXI (MIXI Proposal), with an illustrative value toPointsBet shareholders of $1.28 per share compared to $1.06 under the MIXI Proposal. The Offer delivers upside exposure to the synergy and growth potential of the combined business – something not available in the all-cash MIXI Proposal.

The company expects to realise in excess of $40m in cost synergies, driven by a move to a single brand,
app and technology platform. These synergies are identified, highly actionable and readily unlocked by integrating the businesses. 

The combined business would benefit from deeper investment in brand, product and customer intelligence to drive sustainable and profitable growth. The innovative “mix and match” transaction structure enables PointsBet shareholders to elect to take all cash, all scrip or a combination of both – subject only to scale back mechanisms. 

The all-cash MIXI Proposal denies PointsBet shareholders the opportunity to benefit via the expected $40m of cost synergies, market share growth and participation in further consolidation.

The combined business would have annualised turnover of ~$4 billion and ~10% market share. All shareholders will benefit from ongoing exposure to Australia’s only ASX-listed, pure-play digital wagering business.Critically, the Offer is expected to be highly EPS accretive for existing BlueBet shareholders and expedites the Company’s path to the 10%-15% market share “sweet spot”.

The company has high conviction in financing the transaction, having secured underwriting support
letters to undertake a $160 million equity raise and is well-progressed in securing $100 million of debt
funding.

Further details about the Offer can be found in the accompanying presentation.BlueBet Chairman, Matthew Tripp, said: “Our Offer clearly represents a superior proposal for PointsBet shareholders to realise significant value. Unsurprisingly, we have been inundated with support for our offer in preference to the MIXI Proposal, which sees PointsBet shareholders leave meaningful value on BlueBet Holdings Ltd.

We are confident in progressing our superior proposal and creating the next great challenger brand in this market.”BlueBet CEO, Andrew Menz, said: “Our innovative transaction structure provides flexibility to all PointsBet shareholders to mix and match between their preferred combination of cash and scrip. Those opting to take scrip will gain exposure to significant potential upside, driven by an expected $40m cost synergy prize and further organic and inorganic growth as we consolidate the Australian wagering market.”