BlueBet Holdings requested that trading be halted on the Australian Stock Exchange. Reports suggest the company could merge with Betr.
BlueBet requested the trading halt today (10 April) and contacted the ASX about the issue. BlueBet stated that this halt is temporary, and they plan to resume trading before the end the week.
BlueBet stated that this was necessary until an announcement is made about “a material acquisition” or equity capital raising. This is in response to an ASX price inquiry letter after the exchange contacted them about the trading suspension.
Trading will be suspended until BlueBet releases a new update on the market or the 12th of April, whichever comes first.
BlueBet does not disclose any additional information at this point about a possible acquisition.
BlueBet considering Betr merger
The Australian media has reported that the acquisition could be a merge with Betr.
According to the Australian Financial Review, Betr and BlueBet could merge.
Matt Tripp leads a group of investors that has taken over Betr, which was formerly backed by News Corp. Formerly, the veteran bookmaker led BetEasy in its role as CEO and oversaw its transition into an online operator.
It isn’t the first time that a merger of BlueBet with Betr has come up. AFR stated in January that talks between the two brands were still at an early stage.
BlueBet and Betr are yet to comment on these reports. However, the trading stoppage suggests that a possible deal is close.
BlueBet’s net loss increases in the first half of this year
BlueBet had a mixed-up first half, according to the reports.
For the six months to 31 December, revenue increased by 12.6% year-on-year to AU$27.8m (PS14.5 m/EUR16.9m/US$18.2m). BlueBet stated that this increase was due to a record betting turnover of $319.5m in the first half.
BlueBet’s Australian operations grew in the period, as revenue jumped 13.0%, to $27.9m. Turnover also increased 6.9%, to $298.7m.
BlueBet North America posted a H1 loss of 131,000 dollars. The turnover, however, increased by 1,050.0% and reached $20.7m. The number of active customers increased in H1 as a result of the expansion into new states.
The business saw higher spending, which offset revenue growth, and resulted in a net loss of $10.4m, up from $9.9m the year before.
