A high reliance on racing customers has been cited as one of the reasons for PointsBet’s latest rejection of an acquisition by its rival betr, as its board maintained support for the offer by MIXI.
In the latest exchange of releases via the ASX, PointsBet reaffirmed its recommendation that its shareholders accept the all-cash offer from Japanese-owned MIXI, whose off-market bid of $1.20 per share opened on Tuesday.
One of the reasons PointsBet raised in its rejection should prick the ears of industry observers and racing bodies, with betr’s higher dependence on net win from its racing customers cited as a weakness in any acquisition play.
PointsBet, which undertook a period of due diligence on betr during a protracted takeover battle, described betr’s sports business as “sub-scale” saying it had an unattractive product mix.
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