Takeovers Panel Restrains Betr’s Latest Bid for PointsBet

As MIXI and Betr continue to court PointsBet, the Australian Takeovers Panel has intervened to halt Betr’s latest proposal. Despite the latter company’s recent decision to increase its bid, the panel argued that there were certain disclosure issues.

Betr Has Been Hellbent on Acquiring PointsBet

Betr has sought to acquire PointsBet, which operates sports betting in Australia and Canada for a while now. While the latter company previously considered one of Betr’s earlier proposals, it has lately been much more optimistic about the value proposed by MIXI Australia.

MIXI Australia and Betr have largely had very distinct approaches to courting PointsBet, with the former mostly focusing on immediate value and the latter promising future value generated by inherent synergies.

While Betr, which owns a 19.6% stake in PointsBet, previously succeeded in blocking an earlier MIXI proposal, the Australian arm of the Japanese tech giant returned with an off-market all-cash deal.

Conversely, Betr’s latest deal have seen it put forward nothing but scrip and synergy promises. Although the theoretical returns of the Betr deal would be higher, the PointsBet leadership has remained largely unconvinced.

Despite denying Betr’s earlier proposal, rejecting the company’s “superior proposal” claims, and alleging that the suitor’s synergies claims have been overstated, Betr has refused to give up, raising the stakes each time.

Takeovers Panel Restrains Betr’s Offer

Betr’s latest deal would have seen it put forward 4.22 of its own shares for each PointsBet share, which implies a value of AUD 1.35 per PointsBet share. For comparison, MIXI has offered PointsBet AUD 1.20 per share in cash.

However, the Takeovers Panel has intervened following complaints about disclosure issues in Betr’s offer. As a result, the panel sent an order to temporarily restrain Betr from sending its bidder’s statement to PointsBet’s shareholders.

PointsBet’s complaint further stated that Betr’s proposal outlined an option for AUD 80 million selective buyback, which would allow some shareholders to sell their shares. The former company insisted that this represents a clear inducement.

In addition, the Australian operator noted that Betr’s has announced buyback details at a crucial valuation time, artificially inflating its share price, in breach of minimum bid price rules.

Per the Takeovers Panel’s order, Betr will be unable to release its bidder’s statement, under further notice, determination of proceedings or two months from the date of the order.