There has been some big news in the Australian betting industry this week involving Bluebet Holdings Ltd (ASX: BBT) and Betmakers Technology Group Ltd (ASX: BET).
This has led to both ASX shares rising strongly this week.
Big news from these betting ASX shares
BlueBet shares rocketed 30% on Wednesday before being slammed into a trading halt.
The company acknowledges that this was likely due to the leaking of its merger plans with rival Betr. In its response to a price query request from the Australian stock exchange, BlueBet said:
Yes. BBT confirms that, at the time of receipt of the price and volume query from ASX, BBT was aware of information concerning it that had not been announced to the market which, if known by some in the market, could explain the recent trading in its securities referred to in the ASX letter. This information related to BBT's proposed acquisition of NTD Pty Ltd's (ACN 658 859 262) (betr) wagering business and the associated equity capital raising proposed to be conducted by BBT.
The official details of the merger plans have now been released.
BlueBet has agreed to acquire Betr's wagering business in an all-scrip deal, which it believes will create a leading Australian online wagering company.
It notes that its larger and more competitive combined business is expected to reach monthly EBITDA profitability in the first half of FY 2025 and be EBITDA profitable for the full year.
BlueBet will acquire Betr by way of an asset purchase that will see the issue of approximately 265.4 million fully paid ordinary shares, equating to ~56.9% of its shares on issue.
Though, this is before taking into account the issuance of shares under a $20 million placement that has just been announced. It aims to raise those funds at 21 cents per new share.
The proceeds will be used to fund operational and strategic growth initiatives of the combined business and one-off synergy realisation and transaction costs.
What about Betmakers?
Betmakers is also impacted by this ASX merger news.
According to a separate announcement, in light of its proposed takeover, Betr has agreed to pay outstanding amounts owed to Betmakers.
BetMakers' CEO, Jake Henson, said:
BetMakers is pleased with the agreed outcome between the parties. We are satisfied with the terms to recover outstanding amounts owed to BetMakers by betr. In addition, we are content with the agreement on the ongoing terms that are a result of betr entering into a new transaction. We wish the betr team all the best in its new venture (should it proceed) and will continue to be supportive wherever we can along that path.
Henson also believes that the agreement leaves the company better placed for the future. He adds:
The executed agreement places BetMakers on a much stronger footing going forward, strengthening our cash position, and relieving the Company of a significant resource commitment, both now and into the future. This provides the ability to further reduce our overall cost base and the opportunity to redeploy key technology and development personnel to expedite the NextGen roll-out for clients globally, which will unlock additional efficiencies, significant savings and an improved product offering for BetMakers' customers.
