PointsBet Scheme Vote Dispute Raises Legal and Takeover Risks for Shareholders

• betr claims its proxy vote against PointsBet MIXI scheme was wrongly excluded
• Chair of the meeting allegedly provided no basis for excluding betr’s vote
• betr demands immediate recount including its vote before upcoming court hearing
• If recount not done, betr plans legal challenge at Second Court Hearing
• betr is preparing an unconditional takeover offer for PointsBet shareholders

Disputed Vote Casts Shadow Over PointsBet Scheme

betr Entertainment Limited (ASX, BBT) has publicly contested the handling of its proxy vote during the recent PointsBet MIXI scheme meeting. According to betr, the chair of the meeting impermissibly excluded its vote against the scheme resolution without providing any justification. This development introduces fresh uncertainty into what was expected to be a straightforward approval process for the scheme.

betr confirmed that it had validly lodged its proxy vote opposing the scheme and had not revoked it at any point. The company insists that its vote was recorded in PointsBet's own announcement but was subsequently disregarded in the final tally. betr is now calling for an immediate recount that includes its proxy vote in full.

Legal Challenge Looms Ahead of Court Hearing

The timing of this dispute is critical, with a Second Court Hearing scheduled for the following morning. betr has made it clear that if the chair fails to conduct the recount and announce updated results before this hearing, it will formally challenge the exclusion of its vote in court. This legal confrontation could delay or complicate the approval of the MIXI scheme, which has significant implications for PointsBet’s corporate future.

While the outcome of the court proceedings remains uncertain, betr’s readiness to escalate the matter signals a determined effort to assert its influence over the scheme’s fate. The company’s board, led by industry veterans Matthew Tripp and Michael Sullivan, appears poised to leverage all available avenues to protect its interests.

Unconditional Takeover Offer in the Pipeline

In parallel with the vote dispute, betr is preparing an unconditional takeover offer directly to PointsBet shareholders. Details of this offer have not yet been disclosed, but the announcement suggests that betr is positioning itself for a more aggressive bid to acquire PointsBet. This move could reshape the competitive landscape of the Australian digital wagering market, where both companies operate.

betr’s strategy to challenge the vote exclusion and simultaneously prepare a takeover offer underscores the high stakes involved. Shareholders and market watchers will be closely monitoring developments, as the resolution of this dispute could influence PointsBet’s share price and governance structure.

As the situation unfolds, the industry awaits clarity on whether the MIXI scheme will proceed as planned or face further legal and corporate hurdles.

Bottom Line?

betr’s challenge to the vote exclusion and looming takeover offer set the stage for a pivotal showdown in the Australian wagering sector.

Questions in the middle?

• Will the chair of the PointsBet scheme meeting conduct the demanded recount before the court hearing?
• What are the terms and valuation of betr’s forthcoming unconditional takeover offer?
• How might this dispute and potential takeover impact PointsBet’s share price and shareholder sentiment?