PointsBet held a general meeting to discuss the finalities of its US sale to Fanatics.
PointsBet sold its US business to Fanatics on 30 June 2023, for a cash consideration of $225m, which its shareholders approved. However, completion of the transaction is subject to particular regulatory approvals and other conditions.
There are multiple stages in the process of completing a sale like this. Initial completion is the first stage, followed by subsequent completion being the second stage. $175m is to be received in the first stage and $50m is to be received in the second stage.
PointsBet intends to distribute to shareholders the net sale proceeds (after applicable taxes and transaction costs) together with the majority of the company’s corporate cash reserves that will be surplus to the needs of the remaining business.
This distribution is intended to be in the form of two capital returns: the first one is expected to be circa AU$315m (US$203m) and to be implemented after initial completion; anticipated to be in mid-September.
The second capital return is expected to be between AU$125m to AU$143m, which is anticipated to occur sometime in March 2024. PointsBet will remain contractually responsible for the ongoing operations of its US business until this date.
In the statement, PointsBet clarified that, ‘The Board believes that the pro-rata vesting at second close strikes an appropriate balance to motivate and retain key executives to ensure successful completion of the sale of the US Business.’
