PointsBet ceases trading on ASX ahead of shareholder vote

PointsBet has requested a trading halt on the Australian Stock Exchange (ASX) ahead of its decision to go forward with either DraftKings or Fanatics' offers to buy its US operations.

The request comes in light of an upcoming vote from its shareholders， who will ultimately decide whether to go ahead with the offer from Fanatics ($150m) or DraftKings ($195m).

Shareholders were to approve the $150m proposal from Fanatics but a predicament was presented when DraftKings bid a 30% premium on Fanatics’ offer; which is presumably why the halt has taken place. 

PointsBet provides the following information on the halt: The company sees no reason as to why the trading halt should not be granted; PointsBet also requests that the trading halt remains in place until it decides to announce that it will commence normal trading again.

We discuss the potential deal further in our GI Friday newsletter.

Andrew Hensher， Group General Counsel and Company Secretary for PointsBet，Online Casino Games stated in a letter: “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.”