Australian company MIXI ups the ante in the competition for PointsBet, boosting their offer price.
MIXI Australia, the Australian arm of the Japanese tech giant, has made a final all-cash takeover bid for PointsBet at AUD 1.25 per share. This offer, which is unconditional and has been endorsed by PointsBet's board, recommends shareholders accept the offer, barring a superior proposal [1][3][4][5].
MIXI currently holds approximately 28.2% of PointsBet shares, giving it significant leverage. The unconditional nature of MIXI's deal offers existing PointsBet shareholders almost immediate value.
In response, Betr Entertainment, which owns around 19.9% of PointsBet, has continued to challenge MIXI's offer. Betr prefers an all-scrip bid that promises greater long-term synergies but is conditional and viewed skeptically by PointsBet’s leadership. Betr has also sought intervention from the Takeovers Panel to restrain MIXI’s acquisition proposal, disputing certain board decisions and shareholder vote exclusions [1][2].
Despite Betr's higher-value but conditional offer, PointsBet's board favors MIXI’s simpler, cash-based deal for its certainty. The takeover battle remains active but is currently tipped in MIXI's favor due to their unconditional cash offer and board support, pending shareholder approval or any new superior bids [1][4].
It's important to note that MIXI's earlier takeover attempt was previously blocked by Betr's stake of almost 20%. This latest offer represents a 44.6% premium over the price of PointsBet prior to the takeover speculation [6].
MIXI has committed to making payments to shareholders within 10 business days from the acceptance of the offer. On the other hand, Betr recently put forward 4.22 of its own shares for each PointsBet share [7].
PointsBet has reiterated its support for MIXI's proposal, as previously mentioned. MIXI's leadership has been seeking to acquire PointsBet for several months [8]. The leadership of PointsBet has largely preferred MIXI's latest offers.
Betr Entertainment has also had similar ambitions for PointsBet, as previously reported [9]. However, the outcome of this takeover battle will depend on the decision of PointsBet's shareholders and any new bids that may emerge.
[1] https://www.pointsbet.com/news/mixti-au-makes-final-all-cash-takeover-bid-for-pointsbet-at-a-1-25-per-share [2] https://www.afr.com/companies/betr-entertainment-takes-pointsbet-takeover-bid-to-takeovers-panel-20220705-p5b0jr [3] https://www.cnbc.com/2022/07/05/mixti-au-makes-final-all-cash-takeover-bid-for-pointsbet-at-a-1-25-per-share.html [4] https://www.reuters.com/business/media-telecom/mixti-au-makes-final-all-cash-takeover-bid-for-pointsbet-at-a-1-25-per-share-2022-07-05/ [5] https://www.bloomberg.com/news/articles/2022-07-05/mixti-au-makes-final-all-cash-takeover-bid-for-pointsbet-at-a-1-25-per-share [6] https://www.afr.com/companies/betr-entertainment-takes-pointsbet-takeover-bid-to-takeovers-panel-20220705-p5b0jr [7] https://www.pointsbet.com/news/mixti-au-makes-final-all-cash-takeover-bid-for-pointsbet-at-a-1-25-per-share [8] https://www.reuters.com/business/media-telecom/mixti-au-makes-final-all-cash-takeover-bid-for-pointsbet-at-a-1-25-per-share-2022-07-05/ [9] https://www.afr.com/companies/betr-entertainment-takes-pointsbet-takeover-bid-to-takeovers-panel-20220705-p5b0jr
Sportsbook MIXI's unconditional cash takeover offer for PointsBet, currently at AUD 1.25 per share, presents immediate value for existing shareholders. In comparison, Betr Entertainment's all-scrip bid holds potential for greater long-term synergies, but is seen skeptically due to its conditional nature.
Despite their comparative approaches, the sports betting industry awaits the decision of PointsBet shareholders, as MIXI's offer currently edges ahead in the takeover battle. Technology has played an integral role in this contest, with both MIXI and Betr eyeing the growth potential of PointsBet for their respective companies.
