PointsBet rejects revised Betr bid, reaffirms support for MIXI offer

Australian sports betting heavyweight PointsBet has rejected a revised takeover offer from Betr, maintaining its backing for a competing cash bid from Japanese technology firm MIXI ahead of a key shareholder vote scheduled for June 25.

The company’s board on Monday unanimously dismissed Betr’s latest all-share proposal, which offered 3.81 Betr shares for each PointsBet share and a selective buyback option capped at AU$80 million ($52 million), potentially rising to AU$200 million ($130 million) if Betr secures 90% of the company.

PointsBet described Betr’s revised offer as “materially below” MIXI’s AU$1.20 per share cash bid. Based on the June 19 closing price, Betr’s proposal had an implied value of AU$1.086 per share.

"At present, there is only one transaction capable of acceptance by PointsBet shareholders, which is the Mixi scheme," the company said in a statement.

MIXI’s improved offer values PointsBet at around AU$402 million, representing a 44.6% premium over the company’s February closing price. The deal requires at least 50.1% shareholder approval and regulatory clearance in Ontario, Canada - PointsBet’s remaining international market following the sale of its U.S. business to Fanatics in 2024.

Betr, which already owns 19.9% of PointsBet, has declared its intention to vote against the MIXI proposal.

PointsBet raised several concerns about Betr’s bid, citing “critical shortcomings,” including overestimated synergies, underestimated revenue losses, and the complexity of integrating the two businesses.

The board also questioned Betr’s reliance on “volatile” and “less valuable” VIP customers, and pointed to a high overlap in clientele - 65% of turnover and 61% of net win came from customers who held accounts with both operators.

PointsBet also challenged the credibility of Betr’s buyback proposal, noting that it is subject to Betr shareholder approval and may be waived unilaterally. It described Betr’s claim of “immediate liquidity” as “clearly misleading.”

Early proxy voting results suggest MIXI is gaining strong support, with more than 90% of votes, excluding those tied to Betr, backing the Japanese firm’s offer. Final proxy results are expected ahead of the June 25 shareholder meeting, set for 9:00 a.m.

PointsBet confirmed it has received clearance from Australia’s Foreign Investment Review Board for the MIXI deal, clearing a key regulatory hurdle.