MIXI and Betr Renew Battle for PointsBet with Competing Offers

MIXI Presents a New All-Cash Bid for PointsBet

MIXI Australia has officially put forward a fresh takeover proposal for PointsBet, intensifying the ongoing competition with rival company Betr. This submission follows closely after Betr updated its own offer for PointsBet.

Details of MIXI’s Offer

After previously failing to gain adequate shareholder support for its attempt to acquire PointsBet, MIXI has returned with a revised approach. Unlike before, this new proposal is an all-cash offer rather than a share-based deal, contrasting sharply with Betr’s offer which is entirely share-based.

This new off-market offer also requires a lower level of shareholder approval to be accepted, making it possible for MIXI’s bid to proceed despite opposition, including from Betr, which owns just under 20% of PointsBet shares and had previously blocked MIXI’s acquisition attempt.

The valuation remains similar to MIXI’s prior proposal, placing PointsBet’s worth at approximately AUD 402 million, or about AUD 1.20 per share. If successful, this acquisition would notably expand MIXI’s footprint in the Australian market. The offer is backed by funds from MIXI Australia’s parent company based in Japan and carries no financing conditions.

PointsBet Recommends Approving MIXI’s Proposal

Leadership at PointsBet has publicly endorsed MIXI’s offer, urging shareholders to accept it. The board highlighted that this all-cash proposal provides greater certainty and represents a stronger overall option compared to Betr’s competing bid.

PointsBet has advised shareholders to hold off on responding to Betr’s updated share-based offer until the sportsbook releases an official statement. MIXI has emphasized that its cash offer delivers a dependable and straightforward path forward for shareholders.

Additionally, the MIXI offer has already received all the necessary regulatory clearances, easing concerns over approval timelines.

Betr Counters with a Revised Share-Based Offer

Betr recently submitted a renewed proposal that promises considerable synergies and values PointsBet higher on a per-share basis. Their offer consists of exchanging 3.81 Betr shares for each PointsBet share, combined with commitments to realize AUD 44.9 million in operational synergies.

This places Betr’s valuation of PointsBet at about AUD 1.89 per share, a premium over MIXI’s offer.

Despite these promises, PointsBet’s management remains uncertain about Betr’s synergy claims, citing potential overlaps between the businesses and a lack of guaranteed financial outcomes. Although Betr maintains their synergy estimates are backed by professional analysis, PointsBet’s directors have not been convinced and continue to favor the certainty of the cash bid.