PointsBet Directors Reject Betr’s Acquisition Attempt, Affirm Support for MIXI Proposal

PointsBet Leadership Stands Against Betr’s Acquisition Proposal

The management team at PointsBet has once more declined Betr’s bid to acquire the sportsbook operator. PointsBet maintains that the takeover offer from MIXI offers greater value and encourages its shareholders to favor this proposal.

Betr’s Proposal Fails to Impress PointsBet’s Board

PointsBet recently issued a statement rejecting Betr’s newest all-stock acquisition offer, which suggested exchanging 3.81 Betr shares for each PointsBet share. The board deemed this offer significantly less favorable compared to MIXI’s alternative.

In contrast to Betr’s stock-based bid, MIXI presented an all-cash offer, proposing AUD 1.20 per PointsBet share. While PointsBet’s leadership briefly reviewed an earlier offer from Betr, they have consistently preferred MIXI’s updated proposal due to greater certainty and value.

Previously, Betr utilized its shareholding in PointsBet to prevent an earlier MIXI proposal from passing. However, MIXI responded with an off-market bid requiring fewer shareholder votes and has subsequently increased its stake in PointsBet to 9.15%, enabling it to directly participate in shareholder voting.

Reasons Behind PointsBet’s Rejection of Betr’s Offer

PointsBet clarified that their board found Betr’s unsolicited share offer to be worth considerably less than MIXI’s bid and disputed Betr’s assessment of its offer’s value.

The board also noted that Betr’s proposal is highly conditional, contingent upon approval from Betr’s shareholders and regulatory authorities in Ontario, introducing additional uncertainty regarding its completion and timing.

Furthermore, accepting an all-stock offer would expose PointsBet shareholders to the risks in Betr’s business model, which includes a volatile customer base heavily reliant on VIP clients, an unappealing product selection, and high customer turnover.

PointsBet challenged Betr’s claim of significant synergy benefits, labeling them as overstated. They cited a considerable overlap in the customer bases of both companies, which would diminish the projected synergies from the merger.

PointsBet Directors Advocate for Acceptance of the MIXI Offer

In light of these considerations, PointsBet’s board has unanimously recommended that shareholders approve the MIXI takeover offer. They believe this all-cash deal presents a more reliable and valuable opportunity for stakeholders compared to the alternative proposals.