Betr’s takeover offer for PointsBet has opened to shareholders, but the corporate bookmaking rival’s board remains unmoved as Japanese-backed MIXI has upped its holding to over 33 per cent.
The latest chapter in a long-running takeover battle evolved through a series of respective statements to the Australian Stock Exchange on Monday, as MIXI seeks to strengthen its position.
It confirmed that it had secured an extra 18.3 million PointsBet shares over the past week, with the Australian Financial Review reporting that Easygo holdings, the parent company of Stake.com, had provided its 5 per cent in support of the MIXI bid.
The MIXI offer, which values PointsBet at $1.25 per share, is due to close on August 25, with the aim of securing over 50 per cent of PointsBet. It is working its way towards that target.
But betr continues to play the spoiler in those plans. It reissued its bidder statement on Monday and opened its offer of 4.219 betr shares for every one PointsBet share.
Betr said that values the offer at $1.35 per share based on its recent capital raise down to a minimum of $1.25 per share based on the 30-day price Volume Weighted Average Price.
“The betr board unanimously recommends that PointsBet Shareholders ACCEPT the Offer in respect of all of their PointsBet Shares,” it said.
It highlighted what it said was superior value, compelling synergies and growth potential, value creation, proven board and management team, strategic positioning and tax efficiency. The offer closes on September 22.
Betr also confirmed it had cancelled its upcoming meeting to consider a selective share buy back after an undertaking with the Takeovers Panel.
Betr already has 19.6 per cent share in PointsBet. It has stated that a takeover would deliver it over 10 per cent market share and put it in a strategically important place.
But the PointsBet board remains unanimously supportive of the MIXI all-cash bid.
“Given the Revised MIXI Offer Price and the fact that the MIXI Takeover Offer is now unconditional, the PointsBet Board consider the MIXI Takeover Offer to be superior to the Unsolicited Betr Scrip Offer and recommend that you take no action in relation to the Unsolicited Betr Scrip Offer,” it said.
MIXI has a small presence in Australia through its betM brand but has a growing presence in the Japanese online market through its TIPSTAR product.
In the 2024 financial year, the TIPSTAR business generated around 25 billion yen, or AU$270 million for MIXI.
