PointsBet has reiterated its stance of MIXI’s takeover bid is the “only” offer worthy of being accepted by shareholders ahead of this week’s pivotal vote.
Last week, Betr’s “off-market, all scrip takeover offer” was labelled “materially below” MIXI’s by PointsBet.
Ahead of the shareholder meeting on 25 June, PointsBet has released an update breaking down Betr’s bid, as well as highlighting the due diligence undertaken by the operator on Betr’s business.
PointsBet outlined that the Betr bid would change over time due to it being an all-scrip proposal and that the cash value to shareholders would be uncertain due to the low liquidity of Betr’s shares on the ASX – adding it had no cash certainty for all shareholders.
The operator added the potential buyback option proposed by Betr is a separate transaction and not all shareholders will be entitled to vote on the resolution to approve the buyback.
Referring to Betr’s claim that the synergies would be significant, PointsBet disputed these assertions, arguing the gains laid out by Betr were “materially overstated”.
PointsBet also raised the point that Betr’s offer was conditional on none of its employee incentive awards (PSRs) vesting as a result of the offer.
However, 5.1 million of the awards vest on 1 July 2025, alongside PointsBet also issuing shares to 83 employees. The MIXI offer does not impact this process.
The statement read: “If and when Betr formally provides the terms of the Betr potential takeover offer to PointsBet, the PointsBet board will consider those terms and provide a recommendation to PointsBet shareholders accordingly.”
The update went on to note that Betr’s business is “considerably less attractive” than PointsBet’s business for several reasons, including having a less valuable and volatile VIP-heavy customer base.
There is also significant customer crossover, with over 60% of both firms’ turnover and net win coming from customers who have accounts with both PointsBet and Betr.
Making clear that MIXI’s offer is currently the only acceptable one to shareholders, the statement concluded: “At present, there is only one transaction capable of acceptance by PointsBet shareholders, which is the MIXI scheme.
“The PointsBet directors unanimously recommend that PointsBet shareholders vote in favour of the MIXI scheme at the scheme meeting, in the absence of a superior proposal and subject to the independent expert continuing to conclude that the MIXI scheme is in the best interests of PointsBet shareholders.
“Subject to those same qualifications, each PointsBet director intends to vote all of the PointsBet shares held or controlled by them in favour of the scheme.”
Betr has said it expects shareholders to fail to vote through approval for the MIXI bid.
The post PointsBet bangs drum for MIXI’s bid ahead of shareholder vote first appeared on EGR Intel.
Australian operator reiterates Betr’s offer falls below Japanese conglomerate’s takeover bid of A$1.20 per share, as it implores shareholders to give their backing at meeting later this week
The post PointsBet bangs drum for MIXI’s bid ahead of shareholder vote first appeared on EGR Intel.