PointsBet’s board of directors has rejected Betr’s takeover proposal and issued support for MIXI’s offer of A$402m (£193m) instead, imploring shareholders to support the Japanese conglomerate’s improved bid.
Betr and MIXI have locked horns in recent months, though the former’s most recent offer – valued at A$360m in April, with A$260m in cash and the remainder of the fee comprised of Betr shares – has failed to sway PointsBet bosses.
In contrast, MIXI’s more lucrative proposal will see PointsBet shareholders pocket A$1.20 for each share they hold in the Australian operator.
PointsBet shareholders are expected to vote on MIXI’s offer on 25 June, with the board unanimous in its recommendation that shareholders vote in favour of the offer.
Last week, MIXI’s potential PointsBet takeover was granted approval from by the Australian Government, with the Japanese conglomerate’s Australian subsidiary, MIXI Australia, securing confirmation under the nation’s Foreign Acquisitions and Takeovers Act 1975.
The company already boasts a presence in the country, with MIXI Australia behind the betM brand, which is licensed to operate in the Northern Territory.
Meanwhile, PointsBet outlined the reasons behind its decision to rebuff Betr’s offer, which PointsBet said had “materially overstated” the value of the cost synergies it identified.
One example cited was Betr’s suggestion that PointsBet’s Canadian business could be carved out and sold to Hard Rock Digital, while large synergies are realised concurrently, something that Australian operator argued would reduce the achievability of said synergies.
Bosses added that the value of Betr’s offer varied between A$1.04 and A$1.14 per share, but at no point matched the A$1.20 per share proposed by MIXI.
Additionally, PointsBet’s rejection was influenced by “significant integration and implementation challenges” that were detected during due diligence investigations.
Alongside the fact Betr’s offer fell A$42m short of MIXI’s, PointsBet highlighted the significant amount of customer crossover between the two firms, which could scupper revenue in the long term.
“The board notes its own assessment of the value of the proposal differs materially to that of Betr,” PointsBet said.
“The key reason for the difference in value is the calculations underpinning Betr’s value are reliant on a number of assumptions that PointsBet considers to be unrealistic.”
Betr is yet to release a statement of its own following PointsBet’s disclosure on the ASX.
The post PointsBet rejects Betr proposal and urges shareholders to support MIXI bid first appeared on EGR Intel.
Australian operator identifies “significant integration and implementation challenges” with BlueBet parent company’s offer after due diligence investigation
The post PointsBet rejects Betr proposal and urges shareholders to support MIXI bid first appeared on EGR Intel.