Why the BetMakers (BET) share price is shooting the lights
The BetMakers share price is up more than 11% in the morning session after a rival takeover bid for Sportech was rejected.
BetMakers' acquisition plans for UK-based online gambling company Sportech could be in the bag after talks from a rival bidder in the US were sidelined overnight.
Shares in BetMakers Technology Group (ASX:BET) shot up earlier this month after the Australian betting company announced a $50 million capital raise ahead of plans to acquire Sportech's racing and digital arms in the US, UK and Europe.
But those plans hit a roadblock after New York-based investment firm Standard General threw its hat in the ring with a full take-over bid of Sportsech at 32.5 pence a share. The bid on December 1 follows several rejected offers by Standard General back in November, with the previous price of 28.5 pence a share dismissed as too low.
The latest offer appeared to be of more interest, casting some doubt as to whether BetMarkers plans could go ahead and sending BET's share price down as much as 18% following the news.
Rival offer scrapped
On December 17, Sportech announced it had rejected the final takeover bid from Standard General with the recommendation for shareholders to vote in favour of BetMakers' offer.
As of 10.29am, the BetMakers share price was up more than 11% following the news.
If the plan is successful, it would accelerate BetMaker's global growth plans and cement its presence in the US, the UK and Europe. BetMakers estimates the combined business would deliver combined revenue of $56.1 million in FY2020, compared to BetMakers' standalone $9.2 million.
Sportech shareholders expect to meet to vote on the decision on December 24, 2020.
How to buy shares in BetMakers
To buy shares in an Australian company such as BetMakers, you need to open a share trading account with access to the Australian Securities Exchange (ASX).
Before you get started, make sure to do your homework, weigh the risks of buying shares in a single company against your goals and have a plan in place.
For more information about buying stocks in BetMakers, you can check out our guide.