MIXI Australia Achieves Majority Stake in PointsBet

MIXI Australia, the Australian arm of the Japanese tech giant MIXI, has acquired majority control of PointsBet Holdings, marking another win for the company, despite competitor Betr Entertainment’s efforts to acquire the sportsbook.

A Major Step for MIXI

On September 5, MIXI Australia reached 51.86% shareholding in PointsBet, which is equivalent to some 180.3 million PointsBet shares. This majority stake effectively turns PointsBet into a subsidiary of the Japanese company.

This would likely spell the end of Betr’s takeover ambitions. In a statement, MIXI said that Betr will “not be able to achieve control of PointsBet” or realize its synergy projections. However, Betr still retains a significant 20.45% stake in the sportsbook and could possibly remain a thorn in the Japanese company’s side.

In the meantime, MIXI Australia seeks to cement its ownership and acquire the rest of PointsBet. The company’s latest offer values PointsBet’s stock at AUD 1.25 apiece and is valid until September 12. The Japanese business previously called this offer “final” and said that it does not plan to extend the deadline.

MIXI Australia has further stated that it plans to vote against the appointment of Betr-affiliated members to PointsBet’s board of directors.

MIXI and Betr Have Been Battling for Months

The battle over PointsBet has been raging for several months, with each suitor adopting a different strategy. Whereas MIXI preferred to rely on the certainty that an all-cash deal offers, Betr submitted an all-scrip takeover, offering more than four of its own shares for each PointsBet share.

Betr asserted that its inherent synergies with PointsBet would have generated millions of Australian dollars in additional shareholder value.

PointsBet was initially interested in Betr’s proposal but eventually opted to go with MIXI’s deal due to its certainty and non-conditional nature. On the contrary, the purported value of the Betr takeover was highly dependent on a variety of factors, despite the latter company’s insistence to the contrary.

In any case, PointsBet has reaffirmed its support for the MIXI offer and has also supported the idea of not appointing a Betr-affiliated director to avoid a conflict of interest.