Betr Entertainment has said it will not accept MIXI’s latest takeover offer for PointsBet, in the latest stage of the protracted takeover saga.
Earlier this week, MIXI submitted a fresh bid to assume control of PointsBet worth up to A$1.30 (£0.62) per share, should the Japanese business acquire 90% of PointsBet shares.
If MIXI gained control of fewer than 90% of PointsBet shares, the offer value would decrease to A$1.25 per share.
MIXI also asserted that the bid was its “last and final” offer, valid until 29 August with no room for extension of the deadline.
PointsBet’s board of directors has recommended that PointsBet shareholders accept MIXI’s offer in favour of Betr’s own proposal.
MIXI also stated that its bid had received approval from 37% of PointsBet shareholders.
In a statement released today, 22 August, Betr stated it will not accept MIXI’s offer. Betr is currently PointsBet’s largest shareholder, owning 19.9% of the operator’s outstanding stock.
With Betr’s rejection, MIXI will be unable to own 90% of PointsBet’s shares and thus the value of its takeover offer will fall to A$1.25 per share, the business stated.
A Betr statement read: “Betr will not accept the offer by MIXI Australia to acquire its PointsBet shares. This means that MIXI will not acquire 90% or more of PointsBet shares under the MIXI offer and MIXI’s offer price will not be increased to A$1.30.
“Betr firmly believes that the value implied by the offer consideration under Betr’s offer, combined with the potential to unlock material value by way of up to A$44.9m of expected cost synergies […] represents superior value to PointsBet shareholders when compared to MIXI’s offer.”
Betr submitted its latest takeover bid on 18 August. The offer was an unsolicited all-scrip reverse takeover proposal, which would see PointsBet shareholders receive 4.219 Betr shares for every PointsBet share they own.
This would be worth up to A$1.35 per share, based on Betr’s recent oversubscribed A$130m capital raise valued at A$0.32 per share.
Despite Betr seeking intervention from the Australian Takeovers Panel to give PointsBet shareholders time to evaluate both bids – a request eventually rejected by the regulator – PointsBet’s board of directors dismissed the offer.
Although the Betr offer was initially valid until 25 September, the firm has said that the offer deadline won’t be extended beyond 2 October.
The post Betr plans to stymie MIXI’s fresh PointsBet takeover bid first appeared on EGR Intel.
Operator sets out to exercise its right as the Australian firm’s largest shareholder and reject the Japanese conglomerate’s “last and final” offer
The post Betr plans to stymie MIXI’s fresh PointsBet takeover bid first appeared on EGR Intel.