PointsBet says it will continue to recommend Mixi’s takeover offer ahead of Wednesday’s shareholder vote unless Betr Entertainment provides more convincing details of why its proposal is superior.
Both betr and Mixi have made multiple offers for Australian gambling operator PointsBet, but betr has so far failed to fully persuade PointsBet of its proposal’s merits.
There was a point at which PointsBet said betr’s offer may have been “superior” to Mixi’s, but in its latest statement on Monday, the company said: “At present, there is only one transaction capable of acceptance by PointsBet shareholders, which is the Mixi scheme.”
“If and when betr formally provides the terms of the Betr potential takeover offer to PointsBet, the PointsBet Board will consider those terms and provide a recommendation to PointsBet shareholders accordingly,” it added.
PointsBet said on Monday that betr’s offer has a value of AU$1.14 per share, which remains “significantly lower” than the $1.20 being offered by Mixi.
Betr’s latest proposal offered either an all-scrip deal or the choice of a buy-back, but PointsBet criticised betr chairman Matt Tripp’s comments on this part of the company’s offer.
“There is likely to be limited incentive for existing betr shareholders to approve the buyback. This is because, whilst betr has stated the betr potential takeover offer will be conditional on shareholder approval of the buyback, betr will be entitled to waive this condition and proceed with its offer if the buyback is not approved.
“As such, the statements by the betr chairman in his open letter to PointsBet shareholders that the betr potential takeover offer would provide an ‘accelerated path to cash consideration for shareholders seeking immediate liquidity’ and in their ASX release that it provides ‘cash for immediate liquidity’ are clearly misleading on the basis that there is no certainty that a buyback will be approved by betr shareholders, nor the timing under which any such buyback would occur.”
PointsBet also said that betr has a “less valuable” and “volatile VIP-heavy” customer base, adding that there is “significant customer crossover” between the companies: “Sixty-five per cent of the aggregate turnover of betr and PointsBet and 61 per cent of the aggregate net win comes from customers who have an account on both Betr and PointsBet.”
As for Mixi’s proposal, PointsBet said its share registry is looking at proxies for the scheme.
“While early indications are that the requisite majority will not be achieved based on the proxies received, when removing the betr vote from the proxy results, it is clear that there is significant support for the Mixi Scheme by PointsBet shareholders, with over 90 per cent in favour,” the company said.
“Final verified proxy results will be provided to the market ahead of the Mixi Scheme vote scheduled for 9am on Wednesday, 25 June 2025.”
