Unsolicited takeover offer by Betr repeatedly turned down by PointsBet's board of directors
In a significant development, PointsBet's board has unanimously recommended shareholders accept the competing A$1.20 per share cash bid from Japanese company MIXI Australia. This follows repeated rejections of offers from Betr.
The takeover offer from MIXI opened for acceptance on Monday and will remain open until 25 August, unless extended. The offer represents a 44.6% premium to PointsBet's closing price of A$0.83 on February 25.
MIXI's cash offer provides superior all-cash certainty for PointsBet shareholders, contrasting with Betr's all-scrip (shares-based) proposal. The board of PointsBet has expressed uncertainty about the value of Betr's offer due to its potential volatility and low liquidity of Betr's shares on ASX.
One of the key reasons behind PointsBet's rejection of Betr's offer is the reliance on a volatile, concentrated VIP customer base. Over 50% of Betr’s net win in January 2025 came from just 20 individuals, making the business riskier and less stable. In contrast, MIXI's offer is straightforward and reliable.
PointsBet has also criticised Betr's business, describing it as "unattractive," heavily focused on racing bets, and "sub-scale." This poses regulatory and operational risks for PointsBet shareholders.
Moreover, the synergy benefits from a combined Betr deal have been deemed overstated and conditional, lacking certainty, whereas MIXI’s cash offer is straightforward.
MIXI Australia has already secured pre-bid acceptance agreements covering 9.15% of PointsBet shares from institutional investors including Bennelong Long Short Equity Management and Pictet Asset Management. Combined, MIXI Australia controls 17.18% of PointsBet shares ahead of the formal process.
PointsBet directors hold an 8.02% stake in the company and have indicated they will accept the MIXI offer. This move, along with the recommendations from the board and institutional investors, suggests the MIXI offer is gaining momentum.
MIXI Australia has received regulatory approvals from gaming authorities in Australia and Canada, further boosting confidence in its bid. The offer has a minimum acceptance condition of 50.1% of all PointsBet shares.
Overall, the board of PointsBet believes the cash offer from MIXI provides better value, less risk, and greater certainty, strongly recommending shareholders accept MIXI’s bid over Betr’s.
- The operator MIXI Australia's cash offer presents superior certainty to PointsBet's shareholders, contrasting with the all-scrip proposal from competitor Betr in the gaming industry.
- PointsBet has expressed uncertainty about the value of Betr's offer due to its potential volatility and low liquidity of its shares on ASX, citing the reliance on a volatile, concentrated VIP customer base as a key reason for its rejection.
- In the finance and business spheres, MIXI Australia has secured pre-bid acceptance agreements, controls a significant percentage of PointsBet shares, and has received regulatory approvals, reinforcing the notion that its cash offer is gaining momentum and offers better value, less risk, and greater certainty.
