PointsBet rekindles its struggle with PointsBet through a fresh all-stock offer
The competitive takeover battle for PointsBet, Australia's leading sports betting operator, has taken a new turn with Betr's latest proposal. Here's a rundown of the current status and the key differences between the offers:
**The Proposals**
- **Mixi's Proposal**: Mixi has presented an all-cash offer, valuing PointsBet at AU$1.20 per share. This remains the only transaction that PointsBet shareholders can accept, as of the latest update[1][4].
- **Betr's Proposal**: Betr has made multiple offers, with the latest valuing PointsBet at around AU$1.22 per share in cash terms during negotiations[3]. However, when accounting for projected synergies, Betr's offer effectively values PointsBet at AU$1.89 per share, with a share swap deal offering 3.81 of its own shares for each PointsBet share[2].
**The Comparison**
- **Value**: Mixi's offer provides immediate liquidity at AU$1.20 per share, while Betr's latest offer includes potential future value through synergies, making it more attractive if projections are met[1][2].
- **Structure**: Mixi's offer is straightforward, involving a cash payment for shares, whereas Betr's proposal involves a share swap with potential future buybacks, a structure that PointsBet has criticized for lacking certainty[1][2].
**Recent Developments**
- As of mid-July, Mixi was moving closer to achieving the necessary vote threshold for approval, despite Betr's new offer[5]. - Betr's latest proposal, offering AU$1.89 per share when accounting for synergies, has been positioned as superior to Mixi's offer[2].
The Australian operator, Betr, first approached PointsBet in February and has since built a 19.6% holding[6]. MIXI's bid needs at least 50.1% acceptance under its fallback off-market takeover and some residual regulatory clearances[4]. Proxy tallies ahead of an adjourned 25 June scheme meeting showed more than 90% of votes not tied to Betr backing MIXI[7].
PointsBet struck a different tone last month, stating that there is only one transaction capable of acceptance by PointsBet shareholders, which is the MIXI scheme[8]. However, Betr's offer has reignited interest, reopening the M&A battle for PointsBet that had appeared to end until the escalation on 16 July[9].
MIXI's bid cleared its scheme vote on 25 June, but it still needs majority shareholder support to close its proposal[10]. Betr's offer, without a minimum acceptance condition, is scheduled to open on 31 July and close on 8 September[11].
As the battle between MIXI and Betr continues, PointsBet's shareholders and board must carefully consider the pros and cons of each offer.
- Betr, an iGaming operator, has recently proposed a revised bid for PointsBet, Australia's leading sports betting operator, valuing it at approximately AU$1.22 per share in cash terms during negotiations, and AU$1.89 per share when accounting for projected synergies, setting it apart from Mixi's all-cash offer of AU$1.20 per share.
- Structurally, Betr's proposal involves a potential share swap deal, offering 3.81 of its own shares for each PointsBet share, while Mixi's offer remains straightforward, with a straight cash payment for shares.
- Recently, Betr's latest offer, including the potential future value through synergies, has been positioned as superior to Mixi's offer, rekindling interest in the M&A battle for PointsBet that seemed to have culminated earlier.
- As the takeover battle continues, PointsBet's shareholders and board face the decision of carefully weighing the immediate liquidity offered by Mixi against the potential future value and share ownership proposed by Betr, each with its own merits and drawbacks in the realm of casino finance and investing business.
