PointsBet Snubs Betr’s 4.219 Shares Offer, Endorses MIXI’s 24.7% Stake Bid
PointsBet Holdings has dismissed Betr Entertainment's increased scrip takeover offer, reaffirming its support for MIXI's competing bid amid ongoing regulatory scrutiny.
- PointsBet rejects Betr’s increased scrip offer as materially inferior
- Takeovers Panel issues interim orders restraining Betr’s bidder statement
- PointsBet cites concerns over Betr’s business quality and synergy claims
- PointsBet continues to recommend shareholders accept MIXI’s takeover offer
- MIXI holds a significant 24.7% stake in PointsBet, strengthening its position
PointsBet’s Rejection of Betr’s Revised Offer
PointsBet Holdings Limited (ASX – PBH) has decisively rejected the revised unsolicited scrip takeover offer from Betr Entertainment Limited. Despite Betr increasing its offer from 3.81 to 4.219 shares per PointsBet share, the PointsBet board, supported by external advisers, concluded that the proposal remains materially inferior to the existing takeover offer from MIXI Australia Pty Ltd.
Regulatory Intervention and Disclosure Concerns
Adding complexity to the takeover tussle, PointsBet has lodged an application with the Takeovers Panel concerning disclosure issues related to the valuation of Betr’s scrip offer. The Panel responded by issuing interim orders that prevent Betr from dispatching its bidder’s statement, effectively stalling the progress of Betr’s bid. These proceedings are ongoing, underscoring the regulatory scrutiny surrounding the deal.
PointsBet’s Strategic Concerns About Betr
PointsBet’s board has expressed significant reservations about the quality and sustainability of Betr’s business. Key concerns include Betr’s reliance on a volatile VIP-heavy customer base, an unattractive product mix, and high customer churn despite substantial spending on gratuities. Moreover, PointsBet disputes Betr’s optimistic synergy projections, labeling them as materially overstated. These factors contribute to PointsBet’s firm stance against the Betr offer.
Endorsement of MIXI’s Takeover Offer
In contrast, PointsBet continues to endorse the takeover offer from MIXI Australia, which currently holds a relevant interest in 24.7% of PointsBet shares, plus an additional 1.9% through an institutional acceptance facility. The board unanimously recommends shareholders accept MIXI’s offer, viewing it as a superior and more reliable outcome for shareholders, provided no better proposal emerges.
Next Steps and Market Watch
PointsBet has committed to releasing a detailed target’s statement in response to Betr’s offer once the regulatory hurdles are cleared. Investors and market watchers will be closely monitoring the Takeovers Panel’s decisions and the evolving shareholder sentiment as the competing bids unfold.
Bottom Line?
The battle for PointsBet intensifies as regulatory scrutiny and strategic doubts cloud Betr’s bid, leaving MIXI in the driver’s seat; for now.
Questions in the middle?
- How will the Takeovers Panel’s final ruling impact Betr’s ability to proceed?
- What detailed financial comparisons will PointsBet reveal in its forthcoming target’s statement?
- Could a superior proposal emerge to disrupt the current MIXI and Betr contest?
