Betr returns with renewed takeover proposal for PointsBet

Betr has launched a renewed takeover bid for PointsBet, offering an all-share deal worth up to AU$1.89 ($1.22) per share when including projected cost synergies. The move reignites a contentious acquisition battle with MIXI, whose previous offer failed to secure shareholder approval.

Betr’s latest proposal would see PointsBet shareholders receive 3.81 Betr shares for each PointsBet share - an exchange valued at AU$1.22 per share, based on a Betr share price of AU$0.32. When factoring in an estimated AU$44.9 million in annual cost synergies - equating to AU$0.67 per share - Betr says the total implied value of the offer reaches AU$1.89 per share.

“This is just the start of the value creation journey we envisage for Betr and PointsBet shareholders for the combined business,” Betr said in a statement.

“PointsBet shareholders can benefit from additional, longer-term value upside and potential re-rating from the Betr management team’s unparalleled record of success, and the advantages of scale in a fast-consolidating market,” it added.

Betr’s move comes after a recount of a shareholder vote in June revealed that MIXI’s earlier AU$1.20 per-share cash offer had failed to meet the required approval threshold. A technical error had initially left out Betr’s votes, which the company claims were impermissibly excluded without explanation. Once corrected, only 70.48% of votes favored the MIXI offer, below the required 75% effectively nullifying the deal.

In response, MIXI submitted a revised all-cash bid, maintaining an enterprise value of AU$402 million for PointsBet and offering a 44.6% premium on PointsBet’s share price before the original offer was announced. The PointsBet board has unanimously recommended the updated MIXI proposal, which has also secured regulatory approval in Ontario, Canada.

Betr’s latest offer, set to open on 31 July and close on 8 September, is not subject to a minimum acceptance threshold but requires approval from Betr shareholders. The company also indicated it may improve the offer further, pending developments.

While MIXI’s bid offers cash certainty, PointsBet has previously raised concerns about the reliability of synergies projected by Betr. Betr countered this skepticism, saying its forecasts are supported by multiple expert assessments.