MIXI Submits All-Cash Offer as the Duel for PointsBet Continues

MIXI Australia has formally submitted its latest takeover offer for PointsBet, once again challenging rival Betr. This comes shortly after the latter company updated its own offer for PointsBet.

MIXI Submits an All-Cash Offer

MIXI, which previously failed to secure sufficient shareholder backing for its acquisition of PointsBet, has now returned with a new offer. As the former company has promised, it has now put an all-cash offer on the table, in stark contrast to Betr’s all-share proposal.

Unlike its previous proposal however, the off-market deal would require a lower shareholder approval threshold in order to pass. As a result, even Betr may not be able to stop it from going through.

For context, Betr, which owns a 19.9% stake in PointsBet, previously leveraged its shareholding to block the earlier MIXI deal.

Other than the all-cash aspect, the MIXI deal is very similar to the earlier proposal and values PointsBet at roughly AUD 402 million. This represents a value of AUD 1.20 per PointsBet share and, if approved, would significantly expand MIXI’s presence in Australia.

The deal furthermore comes with no financing conditions and will be paid with funds from MIXI Australia’s Japan-based parent company.

PointsBet Encourages Shareholders to Approve the Deal

PointsBet’s directors have reiterated their support for the MIXI deal, recommending that shareholders approve it. The Australian operator’s leaders reasserted that this deal represents a superior proposal and that it would deliver a higher degree of certainty than the Betr proposal.

Speaking of Betr, PointsBet advised shareholders to take no action in relation to Betr’s latest all-shares offer, at least until the sportsbook issues an official response.

MIXI’s leadership likewise asserted that its deal represents a proposal that offers certainty to PointsBet and its shareholders.

The MIXI deal has notably secured all necessary regulatory approvals.

Betr Also Submitted a Refreshed Proposal

This comes shortly after Betr submitted its latest proposal, once again promising significant value in potential synergies. Betr’s latest proposal offered 3.81 of its own shares for each PointsBet share. In addition to that, the company once again outlined its promise for AUD 44.9 million in synergies.

Betr argued that, in total, its proposal values PointsBet at AUD 1.89 per share.

While PointsBet had taken an earlier Betr proposal into consideration, the latter company’s all-scrip deals have failed to sway the PointsBet leadership. Company directors remained skeptical of Betr’s synergy promises due to overlaps between the two companies and a lack of financial certainty. While Betr insisted that its synergy projections are based on professional analysis, PointsBet remained unconvinced.