Betr Opposes MIXI’s Takeover Bid for PointsBet Shares

Betr Stands Firm Against MIXI’s Acquisition Attempt

Betr Entertainment, a major shareholder in PointsBet, has once again voiced strong opposition to a competing takeover bid from MIXI Australia. Betr owns a significant portion of PointsBet and has previously used its stake to block earlier acquisition efforts by MIXI.

Ongoing Battle for PointsBet

Betr has long sought to acquire PointsBet, a betting operator active in Australia and Canada. Their approach involves offering about 4.2 of Betr’s shares for each PointsBet share, valuing the deal at roughly AUD 1.35 per share through a stock-only arrangement. However, this proposal has faced resistance due to concerns over overly optimistic synergy estimates and uncertainty surrounding the offer’s value.

On the other side, MIXI Australia, a subsidiary of the Japanese technology firm MIXI, has presented a more straightforward all-cash offer. While MIXI’s bid appears to offer less per share on paper, PointsBet’s management favors this choice because it provides greater financial certainty.

Previously, Betr used its approximately 20% stake in PointsBet to prevent MIXI’s earlier takeover attempt. Since then, MIXI has significantly increased its ownership in PointsBet, strengthening its position in the takeover contest.

Betr Rejects MIXI’s AUD 1.30 Per Share Offer

MIXI recently upped its bid to AUD 1.25 per PointsBet share in cash, stating this would be a final offer unless it acquired more than half of the company’s shares. Subsequently, MIXI considered increasing the price to AUD 1.30 if it could secure ownership of over 90% of PointsBet.

In response, Betr issued a firm refusal to this latest offer, declaring that it will not sell its shares. This stance makes it highly unlikely that MIXI will reach the 90% ownership threshold required for a takeover.

PointsBet Acknowledges Betr’s Disclosure Efforts

In a related development, PointsBet has recognized improvements in Betr’s disclosure regarding its takeover proposal. Although PointsBet once criticized Betr’s offer for failing to adequately communicate associated risks and uncertainties, it has since welcomed the enhanced transparency.

Despite this acknowledgment, PointsBet advised its shareholders not to take any action in response to Betr’s bid. At the same time, the company reaffirmed its backing of the MIXI takeover offer.