PointsBet Encourages Shareholders to Back MIXI’s Takeover Offer

PointsBet has once again encouraged its shareholders to accept MIXI Australia’s takeover proposal. In the meantime, the Australian sportsbook reiterated its skepticism about Betr’s rival offer, citing significant risks.

PointsBet Prefers MIXI’s Proposal

MIXI Australia, the Australian arm of the Japanese tech giant MIXI, has continued the fight for PointsBet, hoping to acquire the sports betting business via an all-cash deal. In its best and final offer, the company put forward AUD 1.25 per PointsBet share, hoping to complete its takeover.

Betr Entertainment has staunchly rejected MIXI’s efforts and has tried to sway the PointsBet leadership with an offer of its own. Whereas MIXI Australia offered an all-cash takeover, however, Betr took an all-scrip approach, offering several of its own shares for each PointsBet share.

Betr argued that if its takeover was successful, it could have realized inherent synergies that would have generated significant value for PointsBet shareholders.

On paper, Betr’s offer outlines more value. However, its conditional nature, financial uncertainty, and allegedly overstated synergy projections have caused PointsBet to lean strongly toward the MIXI proposal.

The Deadline Looms

In the meantime, MIXI just secured a 51.86% stake in PointsBet, making it the de facto owner of the Australian business. However, Australian laws prevent the former company from further growing its stake in the near future, unless its acquisition deal passes.

PointsBet has therefore encouraged its shareholders to approve the deal ahead of the September 12 deadline. MIXI Australia has firmly stated that it does not plan to extend the offer further.

At the same time, PointsBet has confirmed that it does not plan to allow Betr to have a board seat due to the conflict of interest it could cause.

Betr, for context, has a 20.45% stake in PointsBet. Although MIXI’s acquisition of a majority stake in PointsBet means the end of Betr’s takeover, the company has continued to insist that its offer represents a superior proposal.

As mentioned, PointsBet has remained unconvinced due to the slow Betr trading. The company pointed out that, for example, zero Betr shares were traded on the Australian Securities Exchange on September 9.