Pointsbet share price halted for 'material transaction'

This sports betting company's shares have been halted ahead of an announcement.

| More on:
man placing sports bet on mobile phone and laptop, sports betting, pointsbet share price

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Pointsbet Holdings Ltd (ASX: PBH) share price won't be going anywhere on Tuesday.

That's because this morning, the sports betting company requested a trading halt.

What's going on with the Pointsbet share price?

This morning, Pointsbet requested an immediate trading halt to "enable it to manage its continuous disclosure obligations in relation to a material transaction."

Pointsbet has requested that the trading halt remain in place until the earlier of the time it makes an announcement to the market and the commencement of normal trading on Wednesday.

No details have been released in relation to what the "material transaction" involves.

What could it be?

It is worth noting that the company's Pointsbet USA business has been the subject of takeover approaches recently.

And with reports claiming that the two potential suitors have a grudge to settle, it wouldn't be a surprise if a bidding war breaks out.

According to the New York Post, the CEO of DraftKings (NASDAQ: DKNG), Jason Robins, is determined to "level the score" with Fanatics boss Michael Rubin.

Draftkings made a US$195 million offer for the business earlier this month, outbidding Fanatics' offer of US$150 million.

The report claims that Robins still holds a grudge after Rubin walked away from advanced US$48 billion merger negotiations in 2021. This deal would have been a 50:50 merger with each company valued at approximately US$24 billion, according to sources.

However, Rubin is understood to have walked away near the end of the process.

Since then, DraftKings shares have lost more than half their value and sources say that Robins has held a grudge ever since. The company has denied this is the case, stating:

To suggest that there is an ulterior motive that is personal and not business related is irresponsible and not grounded in reality.

Don't forget Australia

It is also worth remembering that Pointsbet has previously talked about selling its Australian operations.

And while that seems to have taken a backseat now, it is possible that an offer has been tabled for this side of the business.

Stay tuned for the announcement, expected tomorrow.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended PointsBet. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Mergers & Acquisitions

a woman drawing image on wall of big fish about to eat a small fish
Mergers & Acquisitions

2 ASX shares rocketing up to 20% on takeover news

Takeover offers have been put on the table for these companies.

Read more »

Miner looking at a tablet.
Mergers & Acquisitions

Alumina shares leap 8% on Alcoa takeover bid

ASX 200 investors are sending the Alumina share price soaring following confirmation of Alcoa’s takeover intentions.

Read more »

A man stands in a building site featuring brick walls with building equipment in the background.
Mergers & Acquisitions

CSR share price jumps again as blockbuster bid confirmed

Investors are excited about a potential takeover.

Read more »

A fit man sits and prepares to dive into a hole made in frozen ice.
Mergers & Acquisitions

Guess which ASX 200 stock is frozen on a $976 million acquisition

This company is about to throw down more than one-tenth of its value to double its production.

Read more »

A surprised man sits at his desk in his study staring at his computer screen with his hands up.
Bank Shares

ANZ shares tumble despite Suncorp Bank takeover approval

The Australian Competition Tribunal has finally given the deal the thumbs up.

Read more »

Man with rocket wings which have flames coming out of them.
Mergers & Acquisitions

APM shares rocket 73% after rejecting $1.5b takeover

$1.5 billion wasn't enough for this company's board.

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Mergers & Acquisitions

Why are Boral shares outperforming the ASX 200 today?

This building materials company has received a takeover offer.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Technology Shares

Altium shares rocket on $9.1b takeover deal

This tech stock looks set to leave the ASX boards after accepting a takeover offer.

Read more »