MIXI Raises PointsBet Takeover Bid to $1.25, Secures 28.2% Stake
PointsBet’s board has unanimously recommended shareholders accept MIXI Australia’s increased $1.25 per share cash offer, now unconditional and representing a significant premium. MIXI holds 28.2% of PointsBet and may raise the offer further if it gains majority control.
- MIXI Australia raises takeover offer to $1.25 cash per PointsBet share
- Offer declared unconditional with all regulatory approvals secured
- PointsBet board unanimously recommends acceptance absent superior bids
- MIXI holds 28.2% stake and may increase offer if acquiring over 50%
- Competing all-scrip offer from Betr deemed inferior by PointsBet board
A Compelling Premium on the Table
PointsBet Holdings Limited (ASX – PBH) has taken a decisive step towards a change of ownership as MIXI Australia Pty Ltd has increased its off-market takeover offer to $1.25 per share in cash. This revised offer represents a substantial premium; over 50% above PointsBet’s recent closing price; making it an attractive proposition for shareholders seeking immediate value.
The offer is now unconditional, having secured all necessary regulatory approvals, including from the Foreign Investment Review Board and gaming regulators in Australia and Canada. This removes a significant layer of uncertainty that often accompanies takeover bids, providing shareholders with clarity and confidence in the transaction’s completion.
Board’s Unanimous Endorsement and Shareholder Implications
In a strong show of support, the entire PointsBet board has unanimously recommended shareholders accept MIXI’s offer, provided no superior proposal emerges. Notably, each director has personally accepted the offer, signaling their conviction in the bid’s value and strategic merit.
MIXI Australia currently holds a 28.2% stake in PointsBet, including shares accepted into its Institutional Acceptance Facility. The bidder has reserved the right to increase the offer price if it surpasses 50% ownership, promising that any incremental increase will be paid to all shareholders who have accepted the offer, regardless of timing. This clause introduces a potential upside for shareholders who accept early.
Competitive Landscape and Strategic Considerations
PointsBet’s board has dismissed a rival all-scrip takeover proposal from Betr as inferior and materially overstated in terms of synergy potential. The board’s assessment underscores the preference for a cash offer that delivers immediate liquidity and removes execution risks associated with scrip-based deals.
With MIXI’s offer now unconditional and fully funded, the path to completion appears clearer. Shareholders can expect payment within 15 business days of this announcement or 10 business days after acceptance, whichever is later. This timeline adds a degree of certainty to the transaction’s financial outcome.
Looking Ahead
As the offer period progresses, the market will be watching closely for shareholder acceptance rates and any potential counteroffers. MIXI’s willingness to increase the offer if it gains majority control adds a dynamic element to the bidding process, potentially prompting further shareholder interest and strategic maneuvering.
PointsBet’s future under MIXI ownership could signal a new phase of growth and integration, particularly given MIXI’s regulatory approvals and operational foothold. However, the possibility of a superior proposal, while currently remote, remains a wildcard that shareholders and analysts will monitor.
Bottom Line?
With the offer now unconditional and board-backed, PointsBet shareholders face a compelling cash exit; but the door remains open for surprises.
Questions in the middle?
- Will MIXI Australia increase the offer price upon gaining majority control?
- How will PointsBet shareholders respond to the competing Betr all-scrip proposal?
- What strategic changes might MIXI implement post-acquisition to drive growth?
