Betr has claimed it is “likely” that PointsBet shareholders will not back MIXI’s acquisition offer for the Australian operator in the latest rebuttal in the ongoing saga.
Yesterday, 16 June, PointsBet’s board announced it had decided to reject Betr’s offer for the business, instead imploring shareholders to back Japanese conglomerate MIXI’s revised offer.
PointsBet shareholders are due to vote on 25 June on the proposal. However, Betr has said that it anticipates the proposal will fall short of the required backing.
Betr, which is PointsBet’s largest shareholder with a 19.9% stake, said it will vote against the MIXI proposal.
“Based on its unsolicited interactions, Betr is aware that several PointsBet shareholders have indicated significant support for the Betr proposal and we consider it likely that the MIXI proposal will fail,” the ASX-listed business added.
In PointsBet’s statement from yesterday, the operator said Betr’s offer was rejected due to “significant integration and implementation changes”.
It was also noted that Betr’s bid would be valued at a maximum of A$1.14 (55p) per share for shareholders, compared to MIXI’s A$1.20 bid.
However, Betr claimed its offer will actually be worth A$1.33, should all of its planned synergies materialise.
Those synergies have been disputed by the PointsBet board following a period of due diligence.
A Betr statement read: “Yesterday’s announcement raises questions as to whether PointsBet has acted constructively and in good faith to fully understand the benefits of the Betr proposal for its shareholders.”
MIXI submitted a revised A$402m offer, which is the one being put forward to shareholders later this month. Betr’s bid, a combination of cash and shares, is valued at A$360m.
Andrew Menz, Betr CEO, said: “We categorically reject PointsBet’s characterisation of our cost synergy projections as being ‘materially overstated’. Our team has deep experience in this field and our unparalleled track record speaks for itself.
“Having completed detailed bottom-up analysis, our confidence in the benefits of the Betr proposal for PointsBet shareholders has only increased.
“We are highly confident in our ability to deliver the integration and to create A$1.33 of value for PointsBet shareholders that elect and receive consideration in line with the funding mix – far exceeding the A$1.20 offered by MIXI,” he added.
The post Betr confident that PointsBet shareholders will reject MIXI proposal first appeared on EGR Intel.
BlueBet parent company says conversations with other stockholders has given it confidence the PointsBet board’s recommendation will fall short at the end of the month
The post Betr confident that PointsBet shareholders will reject MIXI proposal first appeared on EGR Intel.