Higher bid received by PointsBet from Betr in potential acquisition deal
The takeover battle for sports betting company PointsBet has taken an exciting turn, with Betr presenting a revised scrip-based offer that challenges Japan's MIXI's cash bid.
Betr's latest offer, set to open on 31st July and close on 8th September, values the bookmaker at around AU$1.22 per share. This offer is an all-stock proposal, with each PointsBet shareholder receiving 3.81 Betr shares. Betr claims this offer is superior to MIXI's AU$1.20 cash per share offer, and the total value could rise to AU$1.89 per share when considering synergies and long-term value creation from the merger of the two companies.
Unlike MIXI's proposal, Betr's bid is an off-market takeover bid with no minimum acceptance condition. However, it requires approval under ASX Listing Rule 7.1 and from Betr shareholders.
The current status of the takeover race was shaken up by a controversial shareholder vote recount at PointsBet. While an initial shareholder vote showed high approval for MIXI (95.69%), the proxy vote was far less decisive (69.47%). Betr claimed its proxy votes were wrongly excluded. After an investigation and recount, only 70.48% of votes supported MIXI’s scheme, falling short of the threshold to carry the resolution. Consequently, the MIXI proposal was not approved, keeping the takeover race open and allowing Betr to submit this fresh offer.
Betr has also confirmed its intention to sell off PointsBet’s Canadian operations to Hard Rock Digital for US$29.6 million if the takeover succeeds. In contrast, MIXI has received approval from the Alcohol and Gaming Commission of Ontario (AGCO) and has no plans to sell PointsBet Canada.
PointsBet directors continue to recommend the sale to MIXI, but the official response to Betr’s new offer is pending. The new bid will be formally assessed by PointsBet and shareholders over the coming months.
This latest move by Betr escalates the takeover contest once again, adding another twist to the ongoing saga. The final outcome will depend on the decision of PointsBet's shareholders and the board, as well as any further developments in the regulatory approval process.
Business and finance are at play in this takeover race, with Betr presenting an all-stock offer valued at around AU$1.22 per share, challenging MIXI's cash bid in the industry of sports betting. This off-market offer from Betr requires approval from ASX Listing Rule 7.1 and from Betr shareholders.
