Despite the fact PointsBet rejected BlueBet’s takeover bid in favour of a competing offer, BlueBet CEO Andrew Menz said the company is still engaged in “overwhelmingly positive” talks with its fellow Australian gaming company.

PointsBet turned down BlueBet’s initial offer in late February. However, Menz said in an announcement this week that he remains optimistic. Those comments came after the firm announced its own successful acquisition of Topsport.

“With the successful integration of TopSport, our focus now shifts to further inorganic growth opportunities in the Australian market, including our compelling and fully funded proposal to acquire PointsBet,” Menz said.

“By providing the flexibility for PointsBet shareholders to choose a mix of cash and scrip, we believe ours is a superior proposal for shareholders to realize value in the short and long term. Our engagement with PointsBet shareholders remains overwhelmingly positive and we look forward to progressing our discussions with the PointsBet board.”

Menz also announced that BlueBet has secured underwriting for an equity raise and has been raising further funding.

PointsBet, which operates sports betting in its native Australia and both online sports wagering and online casino in Ontario’s regulated market, declined to provide comment to Canadian Gaming Business when asked.

PointsBet opted for MIXI offer, but not everyone on board

Its CEO Sam Swanell told investors on Feb. 25 that the company’s leadership had accepted a takeover offer from Japanese firm MIXI in a deal worth a total valuation of around $319 million CAD. BlueBet’s rival bid reportedly had a combined equity value of $307 million to $325 million CAD.

However, while Swanell said that the MIXI deal is unanimously recommended “in the absence of a superior proposal,” investors Wilson Asset Management and Pendal told the Australian Financial Review they may look to reject the MIXI offer in favour of the BlueBet bid.

Menz and BlueBet chairman Matt Tripp have said their offer provides “compelling strategic and financial benefits for PointsBet shareholders.” PointsBet publicly responded that BlueBet’s offer was highly conditional and unfunded and “could not reasonably be expected” to lead to a better offer than MIXI’s.

Both offers remain on the table.

PointsBet refutes BlueBet suggestion

In a letter to shareholders on Thursday, PointsBet chair Brett Paton reinforced the board’s confidence in MIXI’s fully funded, all-cash offer.

Paton emphasized that the company has significant financial concerns about BlueBet’s proposal, and that those concerns have not been sufficiently addressed. He opined that “it is clear that the BlueBet proposal could not reasonably be characterised as ‘fully funded.'”

“The BlueBet proposal was expressed to be non-binding and indicative and is not currently capable of acceptance,” Paton added, per the Australian Financial Review.