PointsBet Responds to Betr’s Updated Acquisition Proposal
Betr’s Pursuit to Acquire PointsBet
Betr Entertainment has been actively attempting to acquire PointsBet, a sports betting company operating in both Australia and Canada. However, the competition to gain control of PointsBet has intensified with MIXI Australia, a division of the Japanese technology company MIXI, also expressing a strong interest in acquisition. This rivalry has created a competitive bidding environment between these two parties.
Contrasting Acquisition Strategies
Betr and MIXI have adopted very different approaches in their bids for PointsBet. MIXI proposes an all-cash deal that guarantees immediate value, whereas Betr has made an unsolicited all-stock offer. Betr’s offer suggests greater potential value through expected synergies that might arise from merging the two companies.
Recently, Betr raised its offer to exchange 4.2 of its shares for every PointsBet share, potentially valuing each PointsBet share at up to AUD 1.35. Despite this, PointsBet’s leadership remains cautious, favoring MIXI’s cash offer due to uncertainties and conditions attached to Betr’s proposal.
PointsBet Acknowledges Betr’s Enhanced Disclosure
PointsBet has recognized the improvements Betr has made in clarifying its proposal details. While the increased transparency is appreciated, PointsBet continues to express reservations, pointing out that the benefits Betr anticipates from synergies may be overstated. They warn that overlapping operations could limit these expected advantages.
Accordingly, PointsBet advises its shareholders to refrain from taking any action on Betr’s all-stock offer at this time.
Current Ownership and Regulatory Status
MIXI continues to expand its shareholding in PointsBet and now holds a 36.71% stake, valuing each share at AUD 1.25 under its “best and final” offer. This offer stands unless MIXI reaches ownership of 50% or more of PointsBet.
Both MIXI and Betr have obtained necessary regulatory approvals in Australia and Canada. The ultimate decision on the acquisition will rest with PointsBet and its shareholders.
Additional Developments
In related news, the Australian Takeovers Panel has declined Betr’s request to restrict MIXI’s acquisition attempt of PointsBet, allowing the bidding contest to proceed without intervention.
