Australian online bookmaker PointsBet said it continues to reject a sweetened takeover offer from Betr Entertainment, insisting the bid remains ‘materially inferior’ to a rival proposal from MIXI Australia.
Betr on Wednesday raised an ‘unsolicited, conditional, all-scrip offer’ for PointsBet, lifting the exchange ratio from 3.81 to 4.219 Betr shares for each PointsBet share. The revised bid, which values PointsBet at approximately AU$1.35 ($0.84) per share, is above MIXI’s all-cash offer of AU$1.20 ($0.75).Â
Betr has argued its offer gives PointsBet shareholders access to a stronger combined business and supports long-term growth in Australia’s betting market. It has urged shareholders to take no action until both bids are formally open.
Despite the proposed increase, PointsBet said its board—advised by external consultants—maintains its position that the Betr offer does not serve the best interests of shareholders and continues to unanimously support the competing takeover offer by Japan’s MIXI Australia.
‘The PointsBet Board continues to regard the Unsolicited Betr Scrip Offer as an inadequate outcome[…] even taking into account the Proposed Variation,’ the company said in a statement to the ASX.
PointsBet raised concerns about the valuation of the scrip consideration and what it described as an overstatement by Betr of the potential cost synergies in the deal. The company also expressed doubts about the strength of Betr’s existing operations, citing risks identified during due diligence.
The company said it lodged an application with Australia’s Takeovers Panel on July 29th, arguing there were disclosure issues with the Betr offer. In response, the Panel’s president issued interim orders restraining Betr from dispatching its bidder’s statement while proceedings remain ongoing.
PointsBet reiterated its recommendation that shareholders accept the MIXI Takeover Offer, which remains open. MIXI Australia has so far secured a relevant interest in 24.7 percent of PointsBet shares, along with an additional 1.9 percent through an institutional acceptance facility.
