PointsBet rejects Betr takeover proposal in favor of MIXI deal
Australian gambling operator PointsBet has rejected a proposed takeover from Betr Entertainment.
On 29 April Betr proposed acquiring the 80.1% (226 million shares) of PointsBet shares that it does not already hold. In a statement PointsBet said Betr’s offer worked out marginally below the US$1.20 per share being offered by rival bidder MIXI Australia.
The operator also said the “value and cost synergies identified by Betr has been marginally overstated” and that there were “significant integration and implementation challenges”.
Consequently, PointsBet has entered onto a bid implementation deed with MIXI Australia.
The Betr offer consisted of a 57% cash consideration, with the remaining 43% in scrip, meaning the value for PointsBet shareholders of that 43% would be determined by the value of Betr shares.
PointsBet observed the value of Betr shares and how this would impact the payout for PointsBet shareholders from 30 April to the middle of June, and the highest value of the proposal reached $1.14 per PointsBet share.
While market analysis was a significant factor in PointsBet’s due diligence, the company also took a longer-term view of the Betr proposal and still determined it was not the best option.
Instead, PointsBet has decided to accept a proposal put forward by Japanese social media and mobile gaming operator MIXI Inc through MIXI Australia at a rate of $1.20 per PointsBet share in cash.
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