Why PointsBet’s Board Now Backs MIXI’s $1.20 Per Share Offer Ahead of June Vote
PointsBet has secured a significantly improved acquisition proposal from MIXI, lifting the cash offer by 13.2% to $1.20 per share and postponing the shareholder vote to June 25. The move intensifies the takeover battle amid ongoing regulatory approvals and a rival bid from Betr Entertainment.
- MIXI raises cash offer from $1.06 to $1.20 per PointsBet share
- Offer represents a 44.6% premium to pre-announcement share price
- Scheme meeting postponed to June 25, 2025
- PointsBet Board unanimously recommends the improved proposal
- Potential alternative takeover bid if scheme fails to gain approval
Improved Offer Signals Stronger Value for Shareholders
PointsBet Holdings Limited (ASX – PBH) has announced an enhanced acquisition proposal from Japanese gaming company MIXI, Inc, increasing the cash consideration payable to shareholders from $1.06 to $1.20 per share. This 13.2% uplift translates to a substantial 44.6% premium over PointsBet’s closing price prior to the initial scheme announcement in February 2025, reflecting MIXI’s renewed commitment to securing the deal.
The improved offer values PointsBet at an enterprise value of approximately $402 million and implies an EV/EBITDA multiple between 28.7 and 36.6 based on the company’s FY25 EBITDA guidance. Notably, the proposal is not contingent on financing, providing a degree of certainty for shareholders considering the transaction.
Shareholder Vote and Regulatory Progress
In light of the revised offer, PointsBet has postponed its scheme meeting from June 12 to June 25, 2025, allowing shareholders additional time to evaluate the improved terms. The Federal Court of Australia has approved this extension, with key dates for proxy submissions and voting eligibility adjusted accordingly.
MIXI has also secured approval from the Northern Territory Racing and Wagering Commission, a critical regulatory hurdle, and is progressing approvals from the Foreign Investment Review Board and Ontario regulators. These developments suggest regulatory risks are being actively managed, although final clearances remain pending.
Board Endorsement and Competing Proposal
The PointsBet Board has unanimously recommended shareholders vote in favor of the amended scheme, subject to an independent expert’s confirmation that the proposal is in shareholders’ best interests and the absence of a superior offer. Directors have committed to voting their own shares in favor, signaling strong internal confidence.
Meanwhile, PointsBet continues to assess a competing proposal from Betr Entertainment Limited, with due diligence ongoing. The outcome of this parallel process could influence shareholder sentiment and the ultimate success of MIXI’s acquisition bid.
Potential Alternative Takeover Route
Should the scheme not receive shareholder approval, MIXI has indicated willingness to pursue an off-market takeover bid at the same $1.20 per share price, subject to negotiation and agreement on terms. This fallback option underscores MIXI’s determination to acquire PointsBet, though it introduces additional uncertainty regarding timing and shareholder acceptance thresholds.
As the June 25 meeting approaches, shareholders face a pivotal decision that will shape PointsBet’s future amid a competitive bidding environment and evolving regulatory landscape.
Bottom Line?
With a stronger offer and regulatory progress, PointsBet’s acquisition saga enters a decisive phase as shareholders prepare to vote.
Questions in the middle?
- Will the independent expert endorse the improved MIXI proposal as fair and in shareholders’ best interests?
- How will the competing Betr Entertainment proposal influence shareholder decisions and potential bidding dynamics?
- What is the likelihood and potential impact of MIXI pursuing the alternative takeover bid if the scheme fails?
