PointsBet Board Warns of Risks in Rival Betr Offer, Endorses MIXI’s Cash Proposal
MIXI Australia has launched a recommended all-cash takeover offer for PointsBet at $1.20 per share, significantly outpacing rival Betr Entertainment’s scrip proposal. The PointsBet board unanimously supports MIXI’s bid, highlighting its certainty and premium value.
- MIXI offers $1.20 per share, a 44.6% premium over PointsBet’s February closing price
- PointsBet board unanimously recommends MIXI’s all-cash takeover offer
- Offer subject to minimum 50.1% acceptance and regulatory approvals including FIRB
- MIXI’s bid contrasts with Betr’s all-scrip proposal, deemed riskier by PointsBet
- MIXI commits to fully funding the offer with no brokerage or stamp duty fees
MIXI’s Compelling Cash Offer
MIXI Australia Pty Ltd has formally announced a recommended takeover offer for PointsBet Holdings Limited, proposing an all-cash price of $1.20 per share. This offer represents a substantial premium of 44.6% over PointsBet’s closing price on 25 February 2025, and a 40.3% premium over the one-month volume weighted average price leading up to that date. The offer values PointsBet’s enterprise at an implied $402 million, translating to an EV/EBITDA multiple of 28.7 to 36.6 based on PointsBet’s FY25 guidance.
Unanimous Board Support and Strategic Certainty
Crucially, PointsBet’s board has unanimously recommended the MIXI offer, citing the certainty and attractiveness of an all-cash proposal. The board highlighted the risks and uncertainties associated with Betr Entertainment’s competing all-scrip bid, which involves complex conditions and potential future liquidity challenges for shareholders. MIXI’s offer is fully funded, free of brokerage and stamp duty fees, and subject only to limited conditions such as a minimum 50.1% acceptance threshold and regulatory approvals including Foreign Investment Review Board (FIRB) clearance.
Competitive Landscape and Shareholder Implications
The takeover battle underscores a competitive tussle in the online gambling sector, with Betr’s alternative scheme having secured over 95% shareholder approval at a recent meeting, excluding Betr’s own votes. However, PointsBet’s board has expressed concerns about the integration risks and potential revenue dis-synergies under Betr’s proposal, which could dampen shareholder value. MIXI’s cash offer, by contrast, provides immediate liquidity and a premium price, making it the preferred choice for shareholders seeking certainty.
Next Steps and Market Outlook
MIXI plans to lodge its Bidder’s Statement with the Australian Securities and Investments Commission and the ASX shortly, aiming for a timely completion of the takeover. The offer’s success will hinge on shareholder acceptance rates and regulatory approvals, particularly from FIRB and relevant gambling regulators in Canada and Australia. Market participants will be watching closely for any developments, including potential counter-moves from Betr and the final shareholder vote outcomes.
Bottom Line?
MIXI’s cash-backed bid sets a high bar in the PointsBet takeover race, but key regulatory and shareholder hurdles remain.
Questions in the middle?
- Will MIXI secure the minimum 50.1% acceptance threshold to complete the takeover?
- How will regulatory bodies, especially FIRB, assess the implications of this acquisition?
- Could Betr Entertainment revise its offer or strategy in response to MIXI’s strong cash bid?
