The saga of PointsBet’s competing takeover bids continues but with a likely lead change. Betr might have had the upper hand just a few months ago, but MIXI’s all-cash, unconditional offer may win the day.
Key Takeaways
- PointsBet was successful in getting Betr to restate its risks to shareholders.
- Betr had to cancel its shareholder vote and has not rescheduled a new one.
- The PointsBet board continues to urge its shareholders to support MIXI’s safer all-cash
offer.
Both Betr and MIXI are battling it out to take over the Australian and Canadian racing and sportsbook PointsBet. PointsBet rejected Betr’s offer in June to buy roughly 80% of PointsBet in a 57% cash and 43% scrip (stock) deal. Since then, Betr upped its offer but made it an all-scrip deal.
Japanese sports and entertainment company MIXI is now offering an unconditional all-cash bid for the company, which the PointsBet board believes is better for its shareholders. At this point, the PointsBet board has approved the all-cash MIXI offer, rejecting Betr’s
unsolicited all-stock offer.
Betr cancels stockholder meeting after disclosure revision
PointsBet Holdings Limited recently pushed back successfully on Betr’s initial disclosure relating to its bid for the company. One of the risks PointsBet had highlighted was that half of Betr’s win was generated from just 20 customers. It also was concerned about a potential
change in the value of the all-scrip offer, considering the low liquidity of Betr’s shares.
As a result, Betr restated its disclosure, clarifying the risks and uncertainties associated with the offer, and requiring the cancellation of its shareholder vote on the matter. No new Betr shareholder meeting has been scheduled.
In a statement provided on Tuesday, the PointsBet board continued to recommended that shareholders take no action on the Betr offer and accept MIXI’s all-cash takeover offer.
Just a little over two years ago, PointsBet sold its U.S. assets to Fanatics for $150 million. MIXI’s latest PointsBet offer of $1.25 per share values the remainder of the company at roughly $418 million.
