Betr’s PointsBet Takeover Secures Shareholder Backing, Regulatory Approvals

Betr Entertainment is not ready to give up on its ambition to acquire PointsBet, despite the latter company’s apparent preference for MIXI’s takeover proposal. The two suitors have been locking horns over the Australian company for several months, with both raising the stakes several times.

Canada Greenlights Betr’s Takeover

Betr Entertainment’s latest proposal confirmed that its proposed takeover of PointsBet has cleared all necessary regulatory approvals in Canada. As a company that operates in both Australia and Canada, PointsBet has a broad presence but also higher regulatory requirements for any potential buyer.

Now, both Betr Entertainment and MIXI Australia have received the green light from the Alcohol and Gaming Commission of Ontario (AGCO) and iGaming Ontario. These approvals have paved the way for either acquisition, intensifying the clash.

The approvals from authorities in Canada were a major condition in Betr’s earlier bidder’s statement.

Betr Secures Approval for Selective Buy-Back

In the meantime, Betr’s investors have indicated approval for one of the key resolutions related to its takeover proposal, potentially bringing the deal closer to fruition. According to the company’s announcement, over 75% of its shareholders have given the thumbs-up to a selective buy-back resolution, which is one of the main conditions of Betr’s all-scrip off-market offer to acquire PointsBet.

Per the agreement, existing PointsBet shareholders would be able to sell some of their Betr shares if the deal passes.

The formal vote is set to take place on August 25, but, according to Betr, this early support shows that the selective buy-back would proceed as planned if PointsBet decides to go with the Betr deal.

Betr Insists Its Offer Represents a Superior Proposal

Contrary to MIXI Australia’s all-cash deal, Betr has doubled down on its all-scrip proposal, raising the stakes by offering 4.22 of its own shares for each PointsBet share.

Betr has further alleged that the inherent synergies between the two businesses would generate tens of millions in additional shareholder value. As a result, the company has insisted that its offer represents a superior proposal.

Despite eyeing an earlier proposal by Betr, PointsBet has mostly rejected the suitor’s latest advances, alleging that its synergy projections are overestimated. While Betr has rejected these claims, PointsBet’s leadership has largely preferred the security offered by MIXI’s offer.

As MIXI and Betr continued to court PointsBet, the Australian Takeovers Panel intervened to halt Betr’s latest proposal following complaints about disclosure issues in the offer.