Not content with its protracted takeover battle for PointsBet, betr has been linked with a play for the Australian business of Entain.
The Australian Financial Review reported on Monday that betr chairman Matt Tripp and chief executive Andrew Menz held a series of meetings with Entain’s executives in London.
The future of Entain’s Australian business, which includes the Ladbrokes and Neds brands, was said to be on the agenda, although discussions were informal, with nothing agreed to.
Betr’s ambitions have seen it embark in a sometimes messy battle with MIXI for PointsBet, with competition driving the value of that company up towards $450 million.
Betr, currently with around five per cent market share having merged with BlueBet and acquired TopSport, has stated goal of trying to get to at least 10 per cent.
Entain holds around 17 per cent of the Australian market and it would be a massive step forward in betr’s ambitions if it were to secure its Australian presence. But the cost of that is likely to be many multiples of the $425 million of shares it had put forward as an offer for PointsBet.
Entain, meanwhile, is in a state of flux, with a much-publicised AUSTRAC action pending, and the parent company allotting around $100 million in provisions, albeit that was said to be just an accounting measure.
Long-time Australasian CEO Dean Shannon left in June, replaced by Andrew Vouris, who has been tasked with a new strategy in Australia and executing the grand plans for the key deal in New Zealand.
The future of Entain’s Australian business has been the source of industry speculation since the AUSTRAC action was announced in December. In its recent global update, it confirmed revenue in Australia had dropped seven per cent on the same time last year.
Bren O’Brien
Tabcorp has also been linked with a play for Entain, although new CEO Gillon McLachlan has given no indication that may be part of his plans. The AFR did say he had been spotted around Entain headquarters.
Betr, meanwhile, looks locked in an impasse when it comes to the PointsBet fight.
MIXI has received acceptances for 37.86 per cent of PointsBet shares. But the Japanese company has conceded it won’t get to the 90 per cent plus it wants.
It is plotting to get more than 50 per cent by August 29, while betr has a counteroffer on the table. Both companies have rejected the others’ offer.
It may be that MIXI controls PointsBet but has to deal with betr as a 19.6 per cent shareholder.
The Straight News Desk
