PointsBet’s board of directors has informed shareholders that MIXI will most likely be in control of the company by the end of this week.
Last week, the Japanese conglomerate launched its final takeover bid for the firm worth A$1.30 (£0.63) per share, in the event it takes control of 90% of PointsBet shares.
PointsBet favoured MIXI’s all-cash proposal over the all-scrip proposal tabled by rival bidder Betr.
Betr has subsequently increased its offer to A$1.40 per share, whereby PointsBet shareholders would receive 4.375 Betr shares for every PointsBet share they own.
MIXI stated earlier this week that it wouldn’t accept Betr’s offer, stating that its own bid had received acceptance from 37.1% of PointsBet shareholders.
In an update released today, 28 August, the PointsBet board confirmed that every director has now accepted MIXI’s offer, and has unanimously recommended that shareholders do the same.
The board also informed shareholders that MIXI will most likely have control of the company at the conclusion of its takeover offer, tomorrow, 29 August, and will be offering board representation to MIXI as part of the deal.
Betr is currently PointsBet’s largest stakeholder, holding 19.9% of its shares. MIXI said it holds a relevant interest in 46.72% of PointsBet shares.
A PointsBet statement read: “Given the current status of the MIXI takeover offer and the unsolicited Betr scrip offer, there is a strong likelihood that MIXI Australia will have effective, if not actual, control of PointsBet at the conclusion of the MIXI takeover offer.
“Betr will, therefore, be a minority shareholder in PointsBet. At the conclusion of the MIXI takeover offer, and given that PointsBet and MIXI Australia are not competitors in Australia or Canada, PointsBet intends to offer MIXI Australia representation on the PointsBet board commensurate with MIXI Australia’s shareholding in PointsBet.”
PointsBet also warned shareholders that the value of their stakes could diminish if they not accept the MIXI offer.
The statement continued: “If you do not accept the MIXI takeover offer prior to the close of the offer period and the MIXI takeover offer lapses, your PointsBet shares will continue to trade on the ASX and be exposed to market volatility, including general stock price movements, changes in economic conditions and the demand for listed securities.
“While the PointsBet directors are unable to predict the price at which PointsBet shares will trade in the future, they consider that, if the MIXI takeover offer lapses and a superior proposal is not forthcoming, the price of PointsBet shares will likely fall in the short term.
“There are a number of possible implications and risks of in? rejecting the MIXI takeover offer and remaining a minority PointsBet shareholder, including that the number of PointsBet shares traded on ASX could be significantly reduced, potentially decreasing the value (and reliability of value) of PointsBet shares held by PointsBet shareholders who do not accept the MIXI takeover offer.”
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Operator attests Japanese conglomerate will have “effective, if not actual, control” of the company when its offer expires on 29 August
The post PointsBet board claims there is a “strong likelihood” of MIXI takeover first appeared on EGR Intel.