MIXI Proposal Fails as PointsBet Admits Technical Mistake Distorted Vote

PointsBet has come forward to confirm that a technical mistake had skewed the results of its recent shareholder vote for the company’s acquisition by Japanese tech firm MIXI. After re-evaluating the results, it turns out that the deal will not pass after all, to the relief of Betr Entertainment.

System Error Excluded Betr’s Vote

Betr and MIXI have locked horns over PointsBet as both seek to acquire the Australian sports betting giant. While the two have had vastly different approaches, they have so far succeeded in parrying each other’s efforts to take over the company.

Yesterday’s shareholder vote implied that PointsBet’s shareholders had reached the vote threshold to proceed with the MIXI deal. Betr was quick to oppose the results and demand a recount, alleging that its vote had not been taken into account.

Betr, for context, owns a 19.9% stake in PointsBet.

PointsBet, which has largely favored the MIXI deal, acknowledged that the vote’s results had been distorted by a system error. According to PointsBet, this happened because Computershare, its registry provider, had failed to process Betr’s proxy vote. This made it seem that Betr had revoked its vote, even though it didn’t.

Computershare later contacted PointsBet to confirm the mistake. And, after accounting for Betr’s vote, PointsBet concluded that the MIXI proposal had failed to pass after all.

Betr Calls PointsBet’s Leaders Unprofessional

Needless to say, Betr was delighted with the outcome. The company, however, was not very happy with PointsBet’s handling of the vote. Betr critiqued PointsBet’s leadership, which had confidently claimed that Betr had revoked its vote, and said that the sportsbook operator should not have announced the result before confirming all details.

The approach taken by PointsBet was unprofessional and irresponsible, reflecting a failure of appropriate governance, and not merely an error by Computershare as PointsBet has suggested.

Betr statement                 

Back to the Drawing Board

With the deal having been rejected, it’s back to the drawing board for MIXI and Betr. The former company has now initiated its backup plan, which is an off-market takeover. This deal’s conditions remain largely unchanged, with MIXI valuing PointsBet at AUD 402 million, or AUD 1.20 per share. MIXI remains confident that it has the backing of the majority of PointsBet stakeholders, asserting that 95% of all votes, excluding Betr’s, were in favor of its deal.

Betr is also not ready to give up. Emboldened by the rejection of the MIXI scheme, the company is likewise preparing a new takeover offer. Betr has remained firm that its proposal and the synergies it offers would greatly benefit PointsBet, resulting in better shareholder value.