The BetMakers Technology Group Ltd (ASX: BET) share price has shed more than 30% of its value since its all-time record high of $1.60, reached on 28 May.
BetMakers shares slipped another 2.26% to $1.08 on Wednesday, but that’s where they will stay, at least for now.
The company requested a trading halt today, pending an announcement regarding the completion of a material acquisition.
BetMakers shares will remain frozen until Monday 21 June or upon the announcement being released to the ASX.
What acquisition is BetMakers referring to?
Investors will likely associate this “material acquisition” announcement with BetMakers’ recent non-binding, indicative proposal to acquire the Tabcorp Holdings Limited (ASX: TAH) wagering and media business.
But unfortunately, we will need to wait a little longer to learn exactly what has been acquired.
The elephant in the room
It’s likely been a frustrating experience for shareholders who have witnessed the BetMakers share price shed 30% in value on the back of its proposal to acquire Tabcorp’s wagering and media business.
Before the sharp selloff that took place on 28 May, BetMakers shares had surged about 138% year to date from 67 cents to their all-time record high of $1.60.
The recent selloff has more than halved their year-to-date performance to about 60%.
Tabcorp announced it had received the indicative proposal on 28 May, with the announcement saying:
The proposal is subject to numerous conditions including due diligence, arranging financing, receipt of all relevant regulatory approvals and obtaining various third party approvals and consents.
The Tabcorp Board has not yet formed a view on the merits of the proposal and will assess it in the context of the previously announced strategic review.
What’s interesting about this acquisition is that BetMakers, which has a market capitalisation of about $900 million, wants to fork out $1 billion in cash and issue $3 billion worth of new shares to acquire Tabcorp’s wagering and media business.
Unfortunately, investors will likely need to wait until Monday to find out what deal the company has struck.