PointsBet (OTC: PBTHF) announced today that its get on of directors evaluated a $195 zillion all-cash play for its US business organisation submitted utmost Friday by DraftKings (NASDAQ: DKNG) and that it plans to mesh in discussions with the suitor.

Perhaps inward an sweat to ensure it’s non left empty-handed, the Aboriginal Australian gaming companionship advised investors to balloting in favour of the $150 billion acquisition proposal for its US building block submitted finally month past Fanatics Betting & Gaming (FBG).

The Board continues to urge that Shareholders vote inward favour of the FBG Transaction at the Extraordinary General Meeting scheduled for Friday, 30 June 2023, while it considers the DraftKings Proposal,” according to a PointsBet statement.

DraftKings revealed a competing adjure to the Fanatcis offer ennead years after eight of the 10 biggest institutional holders of PointsBet equity voted inwards favour of the FBG offer. Combined, those investors own 44.58% of PointsBet’s shares outstanding.

DraftKings on the Clock

Some sports wagering analysts and industry observers speculated that DraftKings may follow sounding to play the role of spoiler or thorn inwards the side of Fanatics. For its part, the original PointsBet US suer claimed DraftKings is merely looking for to cube the transaction.

“In illuminate of the anticipated heightened scrutiny of an acquisition of PointsBet by DraftKings, as compared to the FBG Transaction, please supply written confirmation that DraftKings will adopt the lay on the line of hold up and/or denial of antitrust approvals, as we designate to hold up DraftKings to a ‘hell or mellow water’ monetary standard with honour to antitrust clearances,” wrote PointsBet Chairman Brett Alan Stewart Paton in a missive to DraftKings CEO Jason Robins.

So spell DraftKings’ bid is higher-up to Fanatics’ on paper — a gunpoint acknowledged by PointsBet — the unexampled suer needs to turn up its commitment to the Australian firmly and that potential needs to occur prior to June 30.

“As antecedently advised, it should live noted that the DraftKings Proposal does not constitute a binding offer or loyalty on the parting of DraftKings to negociate or put to death a determinate accord and, to this end, there is no more warranty that the DraftKings Proposal will resultant inwards a back determinate agreement,” according to the statement.

Previously, PointsBet warned investors that if wasn’t successful inward reaching an agreement to sell its US sports wagering operations, it’d likely live forced to sell equity at unfavorable prices, diluting stream investors in the process.

DraftKings Offer Is Strong

On paper, DraftKings’ offer for PointsBet US bests Fanatics’ bid past 30%. Alone, that’s a source of strength and unity that gives the target’s board something to reckon about.

Boston-based DraftKings, which had simply $1.25 1000000000000 in debt at the stop of the first quarter, noted it doesn’t need to finance the transaction. It also believes it can terminated the trade to a greater extent rapidly than Fanatics can. The unexampled suitor also follow trust it canful obtain nation regulatory commendation for the purchase to a greater extent rapidly than Fanatics because it already operates inwards many of the states inward which PointsBet US does business.

It is possible DraftKings could further speed things along past presenting the butt with a programme for dealing with financial losses in the US.

“Additionally, as discussed with you verbally, the Board requires a written confirmation, as soon as practicable, of DraftKings’ spatial relation on funding the hard cash incinerate of the US Business (noting that the FBG Transaction caps PointsBet’s hard currency incinerate at US$21m from 1 July 2023),” added Paton.