A report published a few days ago suggested that an unidentified Asian company is interested in acquiring Australian betting powerhouse PointsBet. The latter company, however, has now come forward to deny the hearsay.
The Report Alleged an Asian Company Is Interested in PointsBet
The original report was posted on Friday by The Australian. In its publication, the news outlet stated that one of its anonymous sources had tipped it off that an Asian company has started M&A negotiations with PointsBet.
The source also told The Australian that the Asian suitor had proposed AUD 300 million ($197.1 million) for a merger or takeover of the ASX-listed operator. This deal would have been subject to a variety of regulatory approvals, including approval from the Foreign Investment Review Board.
As a result of the report, PointsBet’s share price temporarily spiked by 24% to AUD 1.02. The price has since decreased to AUD 0.98 where it remains as of the time of this writing.
The report also implied that PointsBet has been eyeing opportunities for a merger with other companies too.
PointsBet Denies the Acquisition Rumors
Despite the positive effect the rumor had on the company’s shares, it turns out that it wasn’t true. In an official statement, PointsBet came forward to address the mater. Despite usually avoiding to comment on rumors and speculations, the company admitted that it is not in M&A discussions as The Australian’s article suggested.
PointsBet officials added that if the company enters M&A negotiations, it will keep the market updated, as per ASX Listing Rule 3.1.
Analysts have long considered PointsBet to be ripe for a merger, especially in light of its sale of its US assets to Fanatics. The historic sale benefitted both companies as it allowed PointsBet to focus on its core market, while providing Fanatics with plenty of room to grow.
PointsBet’s business has been stable ever since focusing on Australia. The company recently announced that it is not concerned about possible changes to how gambling ads are regulated in the country, believing that its significant presence would allow it to shaker off any ad-related setbacks.
