It’s no arcanum that PointsBet (OTC: PBTHF) is a takeover target. In a new filing with the Aussie Securities Exchange (ASX), the gaming company updated investors on plans to perhaps sell its Second Earl of Guilford American operations.
Earlier this month, it was reported PointsBet hired investiture camber Moelis & Co. to explore a sales event of its US and Canadian River sports wagering business. The Australia-based sportsbook operator confirmed evaluating strategic alternatives to maximise shareholder value, adding that some related to conversations are advanced.
The fellowship is currently in treatment with multiple parties inwards honour of potentiality transactions that would involve voice or all of our Second Earl of Guilford America business. Certain negotiations are considerably advanced,” according to the regulatory filing.
PointsBet cautioned investors that there are no guarantees that a dealings testament materialize, and that it testament remain compliant with Aussie financial securities industry revelation rules past keeping shareholders updated on the talks.
PointsBet Mum on Potential Suitors
PointsBet has long been considered a takeover target, and its market place capitalisation of $335.70 million makes it highly reachable for any keep down of prospective suitors.
PointsBet could follow an interesting target area because it’s constituted in the attractive US market, despite its small boilers suit market place share. Combine PointsBet’s electric current US licenses and diminutive marketplace value, and it could follow an affordable mark for a emptor who believes it can buoy spread out the operator’s domesticated footprint.
None of the names on the list of potential buyers and companies who are inward modern discussions with PointsBet were revealed in the ASX filing. Rumors of a potency sales agreement make been swirling, with names such as Bally’s, Fanatics, and Penn Entertainment mentioned as potency buyers. There’s also been talking that an unidentified buck private equity accompany evaluated a entreat for PointsBet’s Frederick North American arm.
Even if another wooer acquires PointsBet, Penn could benefit, because the regional cassino operator owns an equity stake in the Aussie bookmaker.
Late last year, PointsBet was in talks to sell its Aboriginal Australian business. The companionship has since terminated those negotiations, but said it remains in talks with other 3rd parties that expressed stake inwards getting its Aussie unit.
PointsBet Sources of Allure
While PointsBet has yet to hit profitability in Second Earl of Guilford America, and its divvy up of an ultra-competitive regulated sports betting securities industry is scant, there are points of attractor for bidders.
The keep company holds a permit inwards Ontario, Canada and is unrecorded inwards Colorado, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Michigan, New Jersey, New York, Ohio, Pennsylvania, Virginia, and West Virginia.
Additionally, it sports topline growth and had $251.7 one thousand thousand inward cash in as of the terminal of March, according to the regulatory document.
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