The three-way back-and-forth-and-back between PointsBet and its two takeover suitors, MIXI and Betr, continued this week with updates from all sides as a conclusion to the saga seemingly draws near.
First, at the start of the week, PointsBet’s fellow Australian sportsbook Betr announced it had received overwhelming support among its own shareholders for a key step in its proposed takeover of PointsBet.
More than 75% of Betr shareholders indicated they would support a Selective Buy-Back Resolution, a key step in the company’s all-share, off-market offer to buy PointsBet. That resolution will be put to a formal vote at a shareholder meeting scheduled for Aug. 25.
Under the proposal, the buy-back would be available to all eligible PointsBet shareholders who accept Betr’s takeover offer. Betr Chairman Matthew Tripp said the “decisive” support for the buy-back should instill further confidence in PointsBet shareholders that it will proceed as announced.
Ontario gives green light to Betr bid
Betr also confirmed that all relevant Canadian authorities, including Ontario’s market regulator the Alcohol and Gaming Commission of Ontario (AGCO) and the market’s conduct-and-manage agency iGaming Ontario (iGO), have approved Betr’s potential takeover of PointsBet. PointsBet offers online sports betting in both Australia and Ontario, and the Canadian regulated gambling province is its only online casino market.
Betr’s offer includes a provision to sell PointsBet Canada‘s assets, including all current and future Canadian operations and market licenses, customer databases and intellectual property, to Hard Rock Digital for approximately $40 million CAD.
Betr maintains that its all-stock offer, which proposes to exchange 4.22 Betr shares for every one outstanding PointsBet share, provides the best long-term value for shareholders. But PointsBet’s management doesn’t think so, rejecting the offer and countering that Betr’s “less valuable and volatile VIP-heavy customer base,” horse racing-heavy betting business, and large existing crossover between the two sportsbooks’ customer bases limit the appeal.
MIXI raises stakes in final offer
Days after that Betr announcement, MIXI raised the stakes one last time.
The Australian arm of the Japanese entertainment firm upped its bid to $1.25 AUD per PointsBet share and has declared its offer to be unconditional, waiving the earlier 50.1% minimum acceptance condition. The new offer, which MIXI says is its last, implies an enterprise value of $419 million AUD ($375.7 million CAD).
The offer remains open until the evening of Aug. 25, and MIXI said it will pay PointsBet shareholders who accept by Aug. 29 or within 10 business days of acceptance.
“MIXI Australia reserves the right to increase the offer consideration if it acquires more than 50 per cent of PointsBet shares,” the company stated.
Once again, PointsBet directors have accepted MIXI’s offer and unanimously recommend that its shareholders do the same “in the absence of a superior proposal.” MIXI has also already received the requisite approvals from Ontario, as well as the green light in Australia.
Both companies have flags in the ground
Both offers concern only the remaining outstanding shares in PointsBet, as each of MIXI and Betr has a significant stake in the operator already.
Betr was previously the company’s largest single shareholder at just short of 20%, but MIXI has been quietly building up its own holding and owns 28% of PointsBet shares as of the time of writing, per a company filing.
