Bet returns to the fray, renewing its competition with PointsBet in the battle for accumulated points.
**Headline:** Betr Entertainment and MIXI Square Off in Ongoing Takeover Bid for PointsBet
In a competitive race for control of the Australian digital sports betting market, Betr Entertainment has made a new offer to take over PointsBet. This comes after MIXI Australia's initial AU$402 million cash bid, which was initially approved by PointsBet shareholders, but later contested.
Betr's latest offer is an all-share deal, valuing each PointsBet share at approximately AU$1.22, using a share swap structure where PointsBet shareholders receive 3.81 Betr shares for each PointsBet share. This offer contrasts with MIXI's revised all-cash proposal, which includes a premium of 44.6% to PointsBet's share price before the initial announcement.
Betr, which currently owns a 19.6% stake in PointsBet, is leveraging this position to advocate for a merger. The company anticipates significant annual synergies of nearly AU$45 million, which could add additional value to the offer. Betr also argues that its all-share offer provides longer-term upside for PointsBet investors.
MIXI, on the other hand, has maintained its intent to proceed with the takeover, awaiting further shareholder approval and regulatory clearances. The revised all-cash offer includes the same AU$402 million enterprise value as the initial bid, but without a minimum acceptance condition.
The situation has been fraught with controversy, with a disputed shareholder vote in June regarding MIXI's offer. Betr has questioned the legitimacy of the initial vote, leading to a recount request. The corrected tally showed 70.48% in favor of Betr's offer, but below the required 75% for approval.
The outcome of this takeover bid is contingent on future shareholder decisions and regulatory approvals. If accepted, the combined entity would be the only ASX-listed pure-play digital wagering company in Australia. However, neither MIXI nor PointsBet has publicly commented on Betr's latest offer.
The offer from Betr Entertainment is expected to open on 31st July and close by 8th September. The combined entity could attract more institutional capital and potentially qualify for ASX 300 index inclusion. Betr believes the combined business could offer additional, longer-term value upside and potential re-rating from the Betr management team's unparalleled record of success.
[1] https://www.pointsbet.com/investors/news [2] https://www.asx.com.au/asx/research/company/points-bet-ltd/PRA/news-article/points-bet-ltd-announces-mixi-australia-ltd-s-revised-takeover-proposal-and-recommendation-of-mixi-australia-ltd-s-all-cash-proposal/202106081340176 [3] https://www.asx.com.au/asx/research/company/points-bet-ltd/PRA/news-article/points-bet-ltd-announces-betr-entertainment-ltd-s-revised-takeover-proposal/202107231420414
- In the midst of the competitive battle for the Australian digital sports betting market, technology companies Betr Entertainment and MIXI are employing different strategies, with Betr proposing an all-share deal that leverages technology synergies to potentially provide long-term upside for PointsBet shareholders.
- Despite MIXI Australia's initial cash bid for PointsBet, the ongoing takeover bid has sparked interest in the sports industry, as the outcome will determine which technology-focused company will shape the future of digital sports betting in Australia.
