PointsBet Recommends Improved Proposal From Fanatics; DraftKings Drops Bid For PointsBet's Unit

(RTTNews) - PointsBet Holdings Limited (PBH.AX) board unanimously recommended Fanatics Betting and Gaming's improved proposal of US$225 million to acquire PointsBet's US Business, representing a 50% or US$75 million increase to prior bid.

PointsBet's Shareholders will vote on the Fanatics Betting and Gaming or FBG transaction at the Extraordinary General Meeting this Friday, 30 June 2023.

The FBG transaction continues to incorporate a two-stage completion, with US$175 million to be received at the Initial Completion and US$50 million to be received at the Subsequent completion.

PointsBet said that DraftKings Inc. (DKNG) was unable to finalise a binding offer by 6pm (Melbourne time) Tuesday 27 June 2023 and accordingly the board has determined that the FBG Transaction is superior in terms of both pricing and certainty of being able to complete on a timely basis.

In a separate press release, DraftKings said that the company is no longer pursuing the acquisition of the U.S. business of PointsBet Holdings Ltd.

In Mid-June, DraftKings submitted an indicative offer to acquire PointsBet Holdings Ltd.'s U.S. business in an all-cash transaction with a purchase price of US$195 million.