A major Japanese digital sports and entertainment company is poised to take over PointsBet.
Key Takeaways
- Mixi’s takeover bid could block a lesser offer from Betr.
- The latest offer is a 13.2% share increase and a $49 million value growth from the Betr bid.
- A shareholders' meeting was rescheduled for June 25.
The Australian sportsbook and online casino announced on Tuesday that PointsBet has entered a deed of variation with Mixi, Inc., with an improved proposal that could block a potential takeover bid from Betr.
The recently rebranded BlueBet gaming operator had made an Australian $353 million (US$218 million) initial offer in February, which would’ve given shareholders a cash consideration of $1.06, a 27.7% premium on the closing price of $0.86.
Mixi’s recent offer represents a 13.2% improvement to $1.20 a share, a 44.6% premium, and implies an enterprise value increase of $49 million to $402 million (US$260).
If the offer is not approved by PointsBet shareholders, the company said it’s “willing to consider proceeding with the acquisition … via an off-market takeover bid with a 50.1% minimum acceptance condition.” The price of the takeover would be $1.20 per share.
Trading for the company was halted on Tuesday at PointsBet’s request, but is expected to resume on Thursday or “when the announcement is made to the market,” according to the Australian Securities Exchange (ASX).
Waiting for approval
The shareholders' meeting has been rescheduled for June 25, which has been approved by the Federal Court of Australia. The PointsBet board recommended to shareholders that they approve the offer.
“MIXI has also informed PointsBet in writing that the MIXI board is still considering the precise terms and conditions of any Potential Takeover Offer and will not definitively determine to make a Potential Takeover Offer unless and until a BID has been agreed, signed and exchanged between the relevant parties,” PointsBet stated in the release. “There is no certainty that any BID will be entered into and/or that the Potential Takeover Offer will proceed if the Scheme does not proceed.”
What about Betr?
Mixi Australia, a subsidiary of the Japanese company, originally made a takeover bid for PointsBet in February. Betr, which was still BlueBet at that time, had also bid to acquire PointsBet. Investors reportedly preferred Betr’s offer.
The gaming operator said on Tuesday that the Betr proposal, which was announced on May 12, “is in a period of staged mutual due diligence … to assess the proposal put forward by Betr” on April 29.
PointsBet is continuing with that due diligence with Betr, keeping the door open for the competitor’s counteroffer.
PointsBet said it would keep shareholders updated on any movement with the Betr offer.
