Board of PointsBet again declines Betr's proposal for an unsolicited takeover
In a significant move for the Australian sports betting industry, PointsBet's board has unanimously recommended MIXI's A$1.20 per share all-cash offer over Betr's takeover proposal. The decision comes after careful consideration of several factors, including superior value, certainty, and risk mitigation.
MIXI Australia, a wholly-owned subsidiary of Tokyo-listed MIXI Inc, has received regulatory approvals from gaming authorities in Australia and Canada, adding confidence to the deal. The offer represents a 44.6% premium to PointsBet's closing share price of A$0.83 on February 25, 2025, providing immediate and certain liquidity to shareholders.
In contrast, Betr's offer was all-scrip—3.81 Betr shares for each PointsBet share—which the board deemed "materially inferior" due to the actual value depending on future Betr share performance, lack of immediate certainty, and potential for significant fluctuations. The PointsBet board also highlighted that Betr's proposal was "highly conditional," implying greater execution risk and potential for deal failure.
A key concern for PointsBet was the high customer concentration risk associated with Betr's business model. More than 50% of Betr's net win in January 2025 was generated from just 20 customers, making its revenue more volatile and potentially less sustainable. The board also cautioned that Betr's business structure, with its heavy dependence on a handful of VIPs, introduced elevated regulatory and compliance risks compared to a more diversified customer base.
MIXI's offer has already secured support from key institutional investors and PointsBet's directors, who collectively control a significant portion of the company's shares. MIXI Australia controls 17.18% of PointsBet shares ahead of the formal process, and PointsBet directors hold an 8.02% stake and have indicated they will accept the MIXI offer.
The formal process for MIXI's takeover offer has officially opened for acceptance and will remain open until August 25 (unless extended), requiring a minimum acceptance of 50.1% of all PointsBet shares. The offer does not rely on scrip and synergy assumptions to deliver value to PointsBet shareholders, providing superior all-cash certainty.
This is not the first time PointsBet has rejected a Betr purchase proposal. The board's decision reflects a preference for security, transparency, and risk mitigation over potential but uncertain upside from Betr's growth story. The takeover offer provides a substantial, immediate cash premium with minimal execution risk, making it an attractive proposition for PointsBet shareholders.
- MIXI Australia received regulatory approvals from gaming authorities in Australia and Canada, boosting confidence in their all-cash offer for PointsBet.
- The PointsBet board deemed Betr's all-scrip offer to be "materially inferior" due to the potential for significant fluctuations and greater execution risk.
- A key concern for PointsBet regarding Betr's business model was the high customer concentration risk, with more than 50% of Betr's net win generated from just 20 customers.
- The formal process for MIXI's takeover offer has opened, offering PointsBet shareholders a substantial, immediate cash premium with minimal execution risk.
