MIXI Australia Increases Offer in Competitive Bid to Acquire PointsBet

MIXI Australia Intensifies Acquisition Efforts for PointsBet

MIXI Australia has once again increased its offer to acquire PointsBet amid ongoing competition from rival company Betr Entertainment. This latest bid is described by MIXI as their “best and final” offer, aiming to secure the sports betting operator under favorable terms.

Ongoing Rivalry Between MIXI and Betr Entertainment

MIXI Australia, the Australian branch of the Japanese technology firm MIXI, has been pursuing the acquisition of PointsBet for several months. Meanwhile, Betr Entertainment has also expressed strong interest, resulting in a bidding contest with contrasting approaches.

MIXI’s strategy centers on a straightforward, all-cash proposal, seeking to offer immediate and guaranteed value to PointsBet shareholders. In contrast, Betr has presented a share-based deal, emphasizing potential synergies and long-term benefits that the combination could create.

Although PointsBet’s management initially evaluated Betr’s proposal, they have consistently favored MIXI’s cash offers. Betr has maintained that its proposal is superior and has recently enhanced its offer by proposing a share exchange valued at AUD 1.35 per PointsBet share. Despite this, PointsBet’s leadership has reaffirmed its support for MIXI’s bid.

MIXI Strengthens Its Position with an Increased Cash Bid

To solidify its advantage, MIXI Australia has raised its bid to AUD 1.25 per share in cash. This unconditional offer appeals to PointsBet’s management, who have expressed concerns about Betr’s conditional and non-cash offers.

The unconditional nature of MIXI’s proposal promises swift and certain payouts, with a commitment to deliver payments within 10 business days after shareholders accept the offer.

This revised bid represents a 44.6% premium over PointsBet’s share price before takeover rumors began, making it an attractive proposition for shareholders seeking immediate value.

Although MIXI terms this bid as “best and final,” it reserves the option to adjust the offer if it obtains more than 50% ownership of PointsBet.

PointsBet’s Leadership Backs MIXI’s Offer

The management team at PointsBet has already recommended acceptance of MIXI’s latest proposal, provided that no superior offers arise. Previously, Betr used its nearly 20% stake in PointsBet to hinder MIXI’s takeover attempts, but MIXI has now increased its holding to 28.2%, enhancing its ability to successfully complete the acquisition.