MIXI Australia Secures Majority Ownership of PointsBet

MIXI’s Acquisition of PointsBet Majority Stake

MIXI Australia, the local branch of the prominent Japanese technology firm MIXI, has successfully acquired a controlling interest in PointsBet Holdings. This move marks a significant achievement for MIXI Australia, especially as it outmaneuvers rival company Betr Entertainment, which was also attempting to purchase the sportsbook.

Major Development for MIXI

As of September 5, MIXI Australia possesses 51.86% of PointsBet’s shares, amounting to approximately 180.3 million shares. Holding this majority stake means that PointsBet has effectively become a subsidiary under MIXI’s ownership.

This acquisition likely ends Betr Entertainment’s efforts to take over PointsBet. MIXI has stated that Betr will not gain control of PointsBet or achieve its projected synergies. Nevertheless, Betr still holds a notable 20.45% share in PointsBet, meaning it remains a significant stakeholder with potential influence.

Looking ahead, MIXI Australia aims to consolidate its ownership by acquiring the remaining shares in PointsBet. The company’s latest bid values each PointsBet share at AUD 1.25, with the offer set to expire on September 12. MIXI has made it clear that this offer is final and does not intend to extend the deadline.

Additionally, MIXI has declared its intention to oppose the appointment of any board members affiliated with Betr, seeking to maintain its control over PointsBet’s governance.

Extended Competition Between MIXI and Betr

The contest for control of PointsBet has been ongoing for several months, with MIXI and Betr adopting contrasting approaches. MIXI chose to present a straightforward all-cash offer, emphasizing certainty and immediate value. On the other hand, Betr proposed an all-stock acquisition plan, offering over four of its own shares for each PointsBet share.

Betr argued that a merger with PointsBet would create valuable synergies, potentially adding millions of Australian dollars to shareholder gains.

Initially, PointsBet showed interest in Betr’s proposal. However, it ultimately favored MIXI’s offer due to its assured nature, as Betr’s proposed deal was contingent on various uncertain factors, despite their claims otherwise.

PointsBet has since reaffirmed its endorsement of MIXI’s bid and supports the move to bar any Betr-linked directors from PointsBet’s board to prevent conflicts of interest.