Summary
- AGCO has approved MIXI to move forward with acquiring PointsBet.
- Earlier, an error in the shareholder vote incorrectly indicated that the bid had been accepted.
- This was incorrect, as a computing error had occurred that excluded rival Betr's vote.
The Alcohol and Gaming Commission of Ontario (AGCO) has removed one of the final obstacles for MIXI’s acquisition of PointsBet. The regulator released a statement acknowledging the deal and indicated that it had no reason to intervene or halt the transaction in its current form.
MIXI continues with an off-market bid for PointsBet
With Ontario's approval, the AU$402 million off-market takeover bid can proceed as planned, though potential obstacles remain. Despite receiving regulatory approval from Canada and the Northern Territory Racing and Wagering Commission in Australia, MIXI still requires shareholder approval. To finalize the deal on MIXI's terms, they need at least 50.1% of the vote. However, the voting process has been complicated by PointsBet's unintentional error, which excluded a 19.9% vote against the acquisition from rival Betr Entertainment, who also opposes the deal. Initially, the company announced that the takeover bid was approved by shareholders, but it later emerged that a system error had failed to count Betr's vote. Consequently, the issue remains unresolved, and a new vote will be necessary.
A mistake that is grossly unprofessional and irresponsible
The issue was traced back to the registry provider, Computershare, which apologized for the serious error, although it was caught in time. However, Betr expressed dissatisfaction with the outcome, blaming PointsBet's current leadership and accusing it of being irresponsible and unprofessional. With the initial shareholder vote failing and another on the horizon, MIXI has moved forward with its off-market offer, urging PointsBet shareholders to accept its proposal. MIXI argues that Betr's competing bid offers reduced value for shareholders. Even before the first shareholder vote, PointsBet had shared the view that MIXI's offer provided greater value.
