MIXI Australia has again increased its takeover proposal for PointsBet, with the group saying this will be its final offer to take control of the gambling operator.
The all-cash offer values PointsBet at AU$1.30 per share. This surpasses the previous offer of $1.25 per share, despite MIXI having stated that it was its final offer.
The new, improved offer is contingent on how many shares MIXI is able to acquire in PointsBet however. The AU$1.30 per share price would only apply if it acquired at least 90% of the total holding. It they fell short of this then the company would pay at the previously stated rate of $1.25.
MIXI made clear that this would be its final offer and it does not intend to increase it further.
At present, MIXI has acceptances for a 37.12% holding in PointsBet. To allow shareholders time to consider the improved proposal, MIXI has extended its offer acceptance period to 29 August. This, it added, would also not be extended further.
Could this be the end of the PointsBet takeover saga?
The battle for PointsBet has been rumbling on for several months with both MIXI and Betr Entertainment lodging several offers. PointsBet has favoured MIXI throughout the process but a recent development appears to have pushed MIXI into improving its offer.
Betr formally opened its takeover offer on 18 August, having revealed the bid at the end of July. The all-share, unsolicited proposal saw Betr offer 4.219 of its own shares in exchange for every PointsBet share.
After the offer opened, PointsBet said it had acknowledged several revisions that eased some of its concerns over the proposal. However, it maintained its support for the MIXI offer, urging shareholders to take “no action” over the Betr offer.
This followed a pattern that has been seen throughout the process. Both MIXI and Betr have increased their respective proposals on several occasions, but PointsBet has always favoured the former.
Betr could decide MIXI takeover cost
MIXI came close to securing approval for one of its offers at a shareholder vote in June. This saw 95.69% of shareholders vote in favour of the bid, which then valued PointsBet at $1.20 per share. However, the proxy vote was more mixed, with 69.47% backing the proposal.
This led Betr to accuse PointsBet of “impermissibly excluding” its vote against without reason, with investigation finding a system error excluded Betr votes. Following a recount, 70.48% of votes were in favour of the proposal, which was short of the amount required for a takeover to progress.
While the final offer from MIXI does not require such a high level of shareholder approval, Betr’s holding could still be a sticking point in terms of price. Betr currently holds a 19.9% voting power in PointsBet. Should it not back the bid, the takeover price would likely be $1.25, rather than the high $1.30 cost if 90% of shareholders voted in favour.
Betr is yet to comment on the improved proposal from MIXI.
The new MIXI proposal sets out a purchase price of $1.30 for each PointsBet share.