Summary
- PointsBet’s Board of Directors has approved MIXI’s takeover bid, rejecting Betr's offer.
- Betr's bid was turned down as it was considered less favorable than MIXI's offer.
- Another issue that arose was the risk of market cannibalization between PointsBet and Betr.
PointsBet’s Board of Directors has unanimously turned down the takeover proposal from competitor Betr. Instead, they have reaffirmed their support for the competing bid from MIXI and MIXI Australia, as it presents a more valuable offer.
Betr out, MIXI wins the bidding race for PointsBet
MIXI is aiming to expand its presence in the Australian sports betting market, and acquiring PointsBet is a strategic move in that direction. The company has recently secured another regulatory approval, although some details are still being finalized. According to a company statement, MIXI Australia will announce its intention to make the MIXI Takeover Offer within three business days of the Scheme Meeting if the resolution to approve the MIXI Scheme is not passed by the required majorities of PointsBet shareholders. Regarding the Betr proposal, the company has stated that all discussions have now ended. The Board remains confident that the Betr proposal was not a Superior Proposal in comparison to the MIXI Scheme. Betr's offer intended to acquire roughly 80.1% of PointsBet, whereas MIXI proposed a full 100% takeover, including a higher upfront payment of approximately AU$360 million. Betr already holds a 19.1% stake in PointsBet. Accepting the Betr proposal could have diluted the original PointsBet shareholders' positions, contributing to the decision to reject the bid. The Board was also concerned about potential customer overlap between Betr and PointsBet, as both target similar client bases.
