PointsBet Urges Shareholders to Support MIXI Australia’s Takeover Bid

PointsBet Supports MIXI Australia’s Offer

PointsBet has once again urged its shareholders to accept the takeover offer presented by MIXI Australia. Meanwhile, the Australian sportsbook has expressed concerns about a competing offer from Betr, highlighting the potential risks involved.

MIXI Australia’s Offer Favored by PointsBet

MIXI Australia, the local branch of the Japanese technology firm MIXI, is vying to acquire PointsBet through a full cash transaction. Their final proposal values each PointsBet share at AUD 1.25, aiming to complete the acquisition smoothly.

In contrast, Betr Entertainment, a rival bidder, has dismissed MIXI’s proposal and tried to convince PointsBet’s management with its own offer. Unlike MIXI’s cash bid, Betr proposed an all-stock deal, exchanging its own shares for PointsBet shares.

Betr claims that if its offer succeeds, the combined operations would unlock significant synergies, creating substantial value for PointsBet shareholders.

Although Betr’s proposal suggests higher theoretical value, its contingent terms, financial uncertainty, and arguably inflated synergy estimates have led PointsBet to favor MIXI’s safer, all-cash offer.

Deadline Approaching for Takeover Decision

MIXI recently acquired a 51.86% stake in PointsBet, effectively gaining control of the business. However, Australian regulations restrict MIXI from increasing its shareholding further unless its takeover bid is approved.

With this in mind, PointsBet has encouraged shareholders to approve MIXI’s proposal before the September 12 deadline. MIXI has stated it will not extend this offer period.

In addition, PointsBet has ruled out allowing Betr to take a seat on its board, citing potential conflicts of interest.

Betr currently holds a 20.45% share in PointsBet. Despite MIXI’s majority stake signaling an end to Betr’s takeover attempt, Betr continues to insist its offer is the better option.

PointsBet remains skeptical due to low trading activity in Betr’s shares; for example, no Betr shares were traded on the Australian Securities Exchange as of September 9.