PointsBet backs MIXI’s US$304m offer, rejecting bid from Betr
The Australian betting firm favours MIXI’s all-cash offer.
Australia.- PointsBet has endorsed a takeover bid from Japan’s MIXI, rejecting a rival offer from Betr Entertainment. The board unanimously recommended that shareholders accept MIXI’s AU$1.20-per-share all-cash offer, which has an equity value of AU$460m (US$304m) and enterprise value of AU$402m (US$276m).
The board rejected Betr’s latest scrip-based bid, deeming it “materially inferior.” Betr’s offer, made on July 16, proposed 3.81 Betr shares for every PointsBet share, an exchange valued at AU$1.22 (US$ 0,80), with potential synergy estimates pushing the theoretical value to AU$1.89 (US$1,22). PointsBet said the offer was unreliable due to its dependence on fluctuating share values and uncertain cost synergies.
It also cited what it called Betr’s “volatile” VIP-heavy customer base, “sub-scale” racing-centric sports betting operation and high churn rates. It also criticised the conditional nature of Betr’s proposed synergies, which would require a full takeover and face integration hurdles.
It noted that MIXI’s offer is fully funded, requires no financing conditions and has cleared regulatory approvals in key jurisdictions. It also has 17.18 per cent of PointsBet shares via pre-bid agreements and board ownership.
The MIXI deal remains open until August 25 and requires a minimum shareholder acceptance of 50.1 per cent.
