PointsBet’s board has rejected Betr’s recent all-stock, off-market takeover offer for the operator, claiming the bid is “unattractive”, “highly conditional” and “overstated”.
In turn, the board has recommended shareholders give their backing to MIXI’s off-market bid instead, which has been qualified as being “superior” to Betr’s offer.
Betr’s bid granted those with PointsBet shares the chance to exchange 3.81 Betr shares for each PointsBet one, equivalent to A$1.22 per share, based on Betr’s share price of A$0.32.
However, after engaging external advisers, the board has snubbed the proposal, instead backing the A$1.20 per share cash offer from MIXI.
Betr remains PointsBet’s largest shareholder with a 19.6% stake, but has been informed that its offer is “highly conditional” and one that depends on several variables, such as approval from Ontario regulators and approval from its own shareholders.
The lack of cash certainty for PointsBet shareholders, given the value of Betr’s offer will change over time because of its off-market nature, was also identified as a contributing factor behind the rejection of the offer, alongside Betr’s “less valuable and volatile VIP-heavy customer base” and “unattractive product mix”.
On the VIP point, PointsBet claimed that in January 2025, more than 50% of Betr’s net win was derived from just 20 customers, adding that VIP-heavy business face greater compliance and regulatory risks.
In terms of product, Betr’s strong racing focus was highlighted as another concern, with 85% of net win derived from the sport, while customer churn at Betr was 17% higher than PointsBet.
There are also disagreements over the estimated value of expected annual cost synergies, with Betr putting forward a figure of A$44.9m, which, if realised, is estimated to equate to A$0.67 per PointsBet share.
PointsBet has noted that Betr has overstated the value of cost synergies, with the BlueBet parent company accused of failing to take into account the amount of customer crossover between the two operators.
“There are significant integration and implementation challenges with the unsolicited Betr offer, with Betr assuming that PointsBet’s Canadian business can be carved out without any resulting stranded costs,” PointsBet added.
“We do however note that it is not a condition of Betr’s bid that the Canadian business is carved out.”
MIXI’s own off-market takeover offer, worth A$402m, is now open to PointsBet shareholders, weeks on from its last takeover bid falling short due to a computing error failing to take into account Betr’s opposing vote.
The PointsBet board voted 95.7% in favour of MIXI’s proposal, but given the error and Betr’s significant stake in the company, the results of the vote were deemed null and void.
In light of the voting error and new off-market offer, MIXI stated: “MIXI Australia is encouraged by the fact over 95% of votes cast by PointsBet shareholders (excluding Betr) were in favour […] demonstrating positive support of MIXI’s proposal to offer superior and more certain all-cash value.”
MIXI’s offer remains open to PointsBet shareholders until 25 August, with a 50.1% minimum acceptance condition.
It has already secured 17.2% of votes through pre-bid acceptance agreements, made up of 9.2% of shares owned by institutional investors and PointsBet directors combined 8.02% in shares.
The post Betr’s latest takeover bid rejected by PointsBet board first appeared on EGR Intel.
Australia- and Canada-facing business implores shareholders to accept rival bid from MIXI after deeming Betr’s offer as “materially inferior”
The post Betr’s latest takeover bid rejected by PointsBet board first appeared on EGR Intel.