As I have said, on this platform, a long time ago, aggregation in this sector was inevitable, but price is king. Let's assume for a second that BBT is successful in acquiring PBH at the revised bid price. Is that a good deal? For PBH, absolutely yes. The market cap of the new company will be $500 million-ish. For Newco, what return on that shareholder money will they get? What legislative headwinds will the company face in Oz? Tabcorp and Sportsbet will not easily give up their market share. MT is a gambler, and this is his biggest since the Penrith Panthers episode. My verdict: If Labor/Greens are elected, this transaction will not provide value to existing BBT shareholders, and the only possible justification for the pricing is to be taken out by an existing player, either local or foreign.
BBT Price at posting:
30.0¢ Sentiment: Sell Disclosure: Not Held
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