PointsBet Backs MIXI as Takeover Battle Nears Deadline

PointsBet has confirmed that MIXI Australia is close to gaining significant influence over the business once its takeover offer closes at the end of this week. The Australian newcomer on the online sportsbook market expressed a “strong likelihood” that MIXI will obtain “effective, if not actual” control, and that board representation for MIXI was currently being finalized. 

Board Members Agree With the Offer

In the Second Supplementary MIXI Target’s Statement released Thursday evening, PointsBet revealed that MIXI now holds a relevant interest in 46.72% of its shares. 

The board has continued to unanimously support the offer, asking shareholders to give it the green light in the absence of a better proposal.

However, the battle for PointsBet has attracted a lot of competitors, most notably from Betr Entertainment, founded by Matt Tripp and Michael Sullivan. Earlier this week, Betr increased its offer, lifting its exchange ratio to 4.375 Betr shares per PointsBet share, up from 4.219 previously. 

The ASX-listed digital wagering operator, which already owns 19.1% of PointsBet as of August 27, decided to sweeten its selective buy-back proposal, boosting the potential value from $80 million to at least $90 million, while waiting for approval from shareholders. Under its plan, Betr says investors would receive 32 cents per share.

Even so, PointsBet has remained cautious regarding a potential deal with Betr. MIXI’s cash offer, though smaller in headline value at $1.25 per share, or $1.30 if it gains 90% support, remains the board’s preference.

In Thursday’s statement, the company explained that, considering “the current status of the MIXI takeover offer” as well as the unsolicited Betr scrip offer, “there is a strong likelihood that MIXI Australia will have effective, if not actual, control of PointsBet at the conclusion of the MIXI takeover offer.”

The announcement went on to say that Betr would be “a minority shareholder in PointsBet.”

PointsBet Confirms MIXI Will Have Board Representation 

PointsBet also confirmed its intention to provide MIXI with representation on its board following the close of the transaction. “Given that PointsBet and MIXI Australia are not competitors in Australia or Canada, PointsBet intends to offer MIXI Australia representation on the PointsBet board commensurate with MIXI Australia’s shareholding in PointsBet,” the company said.

MIXI itself has dismissed Betr’s latest proposal, stressing that its nearly 47% stake already creates a big obstacle for Betr. 

“There is no guarantee that Betr will achieve a holding of 50% or more of PointsBet, in which case it’s likely that there will be no synergies available at all for Betr.”, the digital entertainment company that operates social networking services and develops mobile games explained. 
The MIXI offer remains open until 7 p.m. on August 29, and the company has made it clear it will not extend the deadline.