betr Entertainment (ASX:BBT) Steps Up: Equity Raise to Boost PointsBet (ASX:PBH) Acquisition Ambitions

April 29, 2025 05:01 PM AEST | By Team Kalkine Media

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betr Entertainment (ASX:BBT) Steps Up: Equity Raise to Boost PointsBet (ASX:PBH) Acquisition Ambitions — Image source: Shutterstock

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Highlights

betr Entertainment launches major equity raise for expansion

Becomes largest shareholder in PointsBet Holdings

Seeks to unlock synergies and drive future growth

betr Entertainment Limited (ASX:BBT) has announced a significant move with a fully underwritten equity raising of approximately A$130 million. The strategic fundraising initiative includes a pro-rata accelerated non-renounceable entitlement offer and an institutional placement. The fresh capital injection is set to support betr Entertainment’s plans to acquire a major stake in PointsBet Holdings Limited (ASX:PBH), further a full acquisition strategy, and cover related offer costs.

Taking a Bold Stake in PointsBet
betr Entertainment now holds a 19.9% stake in PointsBet, making it the company's largest shareholder. This ownership position enables betr Entertainment to challenge MIXI's current proposal for PointsBet, as it brings forward its own acquisition bid. The revised offer from betr Entertainment values PointsBet at approximately $360 million. It highlights an expected realization of over $40 million in annual cost synergies, presenting a proposal that could offer greater value to PointsBet shareholders compared to the existing MIXI scheme.

Strategic Funding and Cost Benefits
To further strengthen the acquisition process, betr Entertainment has secured a credit-approved debt facility of $120 million from National Australia Bank. Additionally, a non-binding agreement to sell PointsBet Canada’s assets for around A$45 million is expected to provide added financial flexibility. These moves are aimed at reinforcing the financial backbone of the proposed acquisition. The anticipated $40 million annual cost synergies build upon betr Entertainment’s previous successful transactions with BlueBet (ASX:BBT) and TopSport, where synergies of approximately $26 million per annum were achieved.

Strong Financial Momentum
betr Entertainment continues to demonstrate strong financial performance, recording a turnover of $376 million for Q3 FY25, marking a 170% surge compared to Q3 FY24. Operating cash flow for the quarter stood at $3.3 million, showcasing robust trading activities and effective cash management strategies.

The strategic equity raise, acquisition proposal, and strong financial results reflect betr Entertainment’s ambition to strengthen its position in the dynamic wagering sector. As the competition intensifies, the developments around PointsBet are expected to reshape the landscape, positioning betr Entertainment for a larger market share and enhanced operational efficiency.

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