Bid from PointsBet increased by MIXI, withconditions eliminated, as board substantiates takeover approval
In a thrilling turn of events, the takeover bid for PointsBet has escalated into a bidding war between Betr and MIXI Australia.
Betr, in its latest move, has raised its all-scrip offer, valuing PointsBet at around AU$1.35 per share. This offer, based on Betr's recent share price of AU$0.32, surpasses MIXI's all-cash bid of AU$1.20 per share. Betr has urged shareholders to hold off on making decisions, promising that they will have a clearer picture once the official bidding windows open.
MIXI, in response, has submitted an improved "best and final" bid of AUD 1.25 per share, aiming for a AUD 419 million acquisition. This unconditional proposal, backed by cash reserves from the parent group, comes with no financing conditions and has waived the 50.1% minimum acceptance condition.
Initially, PointsBet's board preferred MIXI’s offer due to concerns about cash certainty and the value of Betr’s shares. However, Betr's elevated offer has changed the game, prompting MIXI to make its latest bid.
The board of PointsBet has confirmed its support for the bid "in the absence of a superior proposal." Shareholders are advised to take no action regarding the Betr offer while PointsBet prepares a formal response. It's worth noting that each director has already accepted the deal in respect of their own holdings.
Betr's counteroffer, received by PointsBet on 17 July, offers 3.81 Betr shares for each PointsBet share, providing no cash certainty, according to PointsBet.
The bidding war remains active, with the outcome depending on shareholder support, regulatory rulings, and potential further offers. MIXI already holds a 28.2% stake in PointsBet, including acceptances received via its Institutional Acceptance Facility.
The revised offer from MIXI represents a 44.6% premium to PointsBet's last closing price before takeover speculation began in February. This new bid, described as the "best and final," unless it acquires more than 50% of PointsBet shares, offers shareholders near-immediate payment upon acceptance.
In a significant development, Betr has filed an application with the Australian Government Takeovers Panel to review MIXI’s acquisition offer. This move indicates ongoing regulatory and legal contestation in the takeover process.
As the battle rages on, shareholders are urged to await full disclosure before making decisions. The saga continues as both Betr and MIXI vie for control of PointsBet.
- The gaming industry is witnessing an intense bidding war between operators Betr and MIXI Australia, with each making consecutive offers to acquire PointsBet.
- The financial stakes are high in this battle, as Betr has proposed an offer of AU$1.35 per share, surpassing MIXI's revised bid of AU$1.25 per share for the acquisition of PointsBet.
- Despite initially favoring MIXI's offer, the board of PointsBet has expressed support for Betr's offer in the absence of a superior proposal, potentially reshaping the iGaming business landscape.
