PointsBet Suspends Trading On ASX Prior To Shareholder Vote.
The sports betting provider requested the halt so that it could "enable it to manage its continuous disclosure obligations in relation to a material transaction."
PointsBet has requested a trading stop on the Australian Stock Exchange (ASX) until it decides whether to accept the bids from DraftKings or Fanatics to acquire its US business.
The request is being made in light of an upcoming shareholder vote, which will determine whether to accept the offer from Fanatics ($150 million) or DraftKings ($195 million).
Shareholders were expected to approve Fanatics' $150 million proposal, but a problem arose when DraftKings responded with a 30% premium, which is probably why the suspension has occurred.
PointsBet provides the following details on the halt: PointsBet seeks that the trading suspension continues until it decides to announce that it will resume regular trading; the firm sees no reason why it shouldn't be granted.
In a letter, PointsBet's Group General Counsel and Company Secretary, Andrew Hensher, said the following:
"PointsBet requests the trading halt to enable it to manage its continuous disclosure obligations in relation to a material transaction.
"PointsBet requests 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 28 June 2023, and PointsBet is not aware of any reason why the trading halt request should not be granted, nor of any other information necessary to inform the market about the trading halt."
