Betr has underwriting and ‘credible lender’ in place for Pointsbet bid

More detail has emerged in Matt Tripp’s last-ditch bid for a rival that is already subject to a takeover offer from a huge Japanese company.

Betr chairman Matt Tripp is trying to put a deal in place for a takeover bid for Pointsbet. Picture: Aaron Francis/The Australian

Matt Tripp-backed Betr has sought to raise pressure on Pointsbet board, with an investor presentation that argues it has the financial firepower for its $360m offer that trumps a merger deal already underway for gaming rival Pointsbet.

Mr Tripp’s bookmaker business has pushed back over concerns raised by Pointsbet over the viability of a bid he tabled last week by saying he is well advanced in securing up to $100m in loans with support letters from “credible lenders”, on the condition of a short period of due diligence.

At the same, Betr says it has received underwriting support letters from its investment bankers up to $160m underpinning confidence to support an equity raising in full.

Mr Tripp last week sought to upset a $352m friendly deal between Pointsbet and Japanese gaming major Mixi.

He is seeking talks with the Pointsbet board, which has so far refused to engage with the listed Betr.

“The [BlueBet] proposal was unfunded, subject to an explicit financing condition, and would require BlueBet to both raise $100m in debt and undertake a large upfront capital raising ($160m), the terms of which were uncertain and could materially affect the value ultimately received by PointsBet shareholders,” Pointsbet said in a statement to the ASX last week.

“The PointsBet board … determined that the proposal could not reasonably be expected to lead to a superior proposal,” Pointsbet said in comparing the Bluebet bid to Mixi’s offer.

CEO Sam Swanell from Pointsbet has already accepted a takeover bid from Mixi. Picture: Stuart McEvoy/The Australian

Mr Tripp now says he has “underwriting support letters” in place from Jarden Australia, Ord Minnett and Morgans Corporate.

He has appealed directly to Pointsbets shareholders, arguing its combined cash and scrip offer is superior to Mixi’s all cash bid.

Mixi is offering $1.06 a share for Pointsbet. Betr says Pointsbet shareholders can take their entire payout in $1.11 to $1.20 cash, depending on the equity take up of his offer. He argues the scrip will be worth $1.50 after cost savings between the two companies are taking into account.

Betr has argued PointsBet shareholders will likely be significantly better off in all scenarios versus the Mixi proposal, the presentation says.

Betr says it has the backing of Pointsbet investors Wilson’s and Pendal for the proposal.

Pointsbet represents the last chance for Mr Tripp to put together a substantial listed wagering business on the ASX. He said the combined business would immediately have a 10 per cent share of the Australian digital betting market.

But if the Mixi play for Pointsbet goes through, it would mean Betr would continue to have somewhere between 5 and 10 per cent of the market and be an ASX listed small cap outfit.

More to come

Originally published as Betr has underwriting and ‘credible lender’ in place for Pointsbet bid