PointsBet Supports MIXI Acquisition as Betr Proposal Stalls
PointsBet reaffirmed its support for the cash acquisition agreement with MIXI, despite an approach from Betr proposing an all-scrip takeover. The company stated that Betr’s offer lacks formal terms and provides no certainty for its shareholders.
MIXI Deal Remains the Board’s Choice
PointsBet said it still favors the MIXI offer of A$1.20 per share. The agreement includes a scheme of arrangement and an associated takeover bid if the scheme does not gain shareholder approval. The PointsBet Board confirmed its intention to support the MIXI agreement. Directors stated they will vote in favor of the scheme.
PointsBet pointed out that Betr has not yet disclosed formal terms for its proposed offer. Its value ranged between A$1.05 and A$1.14 per share based on recent trading. The company warned that the all-scrip nature of the bid exposes shareholders to share price fluctuations and low liquidity. This means returns would be uncertain for those looking for cash.
High Conditions and Unclear Benefits
PointsBet stated that the Betr offer is highly conditional. It depends on several approvals, including a proposed buyback that may not gain shareholder support. PointsBet also questioned Betr’s cost-synergy claims, noting its own review found these projections overstated.
PointsBet explained that its customer base has significant overlap with Betr, which could reduce the benefits of any merger. Its internal review suggested that the overlap might neutralize much of the anticipated cost savings.
Shareholder Vote Goes Ahead
PointsBet will hold its shareholder vote on the MIXI scheme on June 25, 2025. Proxies received so far indicate strong support when excluding Betr’s votes. The PointsBet Board will recommend accepting the scheme or the related takeover bid, if required, in line with its fiduciary duties.