Betr opens takeover offer for PointsBet as MIXI ups stake

Betr has formally launched its off-market, all-scrip takeover offer for PointsBet, escalating a head-to-head contest with Japan’s MIXI for control of the Australian bookmaker.

The offer, lodged with regulators and now open to shareholders, will close on September 22 unless extended. It entitles PointsBet investors to receive 4.219 Betr shares for each of their shares, valuing the company between AU$1.25 ($0.81) and AU$1.35 ($0.88) a share based on recent trading and Betr’s AU$130 million ($84.4 million) capital raise.

“The Betr board unanimously recommends that PointsBet Shareholders ACCEPT the Offer in respect of all of their PointsBet Shares,” Betr said in its bidder’s statement, describing the proposal as offering “superior value, compelling synergies and growth potential, value creation, proven board and management team, strategic positioning and tax efficiency.” The company has flagged annual cost savings of up to AU$44.9 million if it secures full ownership.

PointsBet’s directors, however, have thus far remained aligned with MIXI. The Tokyo-listed group’s unconditional AU$1.25-a-share cash offer closes August 25, and the board has already backed it unanimously, with each director accepting MIXI’s bid.

“Given the Revised MIXI Offer Price and the fact that the MIXI Takeover Offer is now unconditional, the PointsBet Board considers the MIXI Takeover Offer to be superior to the Unsolicited Betr Scrip Offer and recommends that you take no action in relation to the Unsolicited Betr Scrip Offer,” the board said.

MIXI has strengthened its position by lifting its stake in PointsBet to more than 33%, including the 5% holding of Easygo Holdings, parent of online betting group Stake.com. The company aims to secure more than 50% of PointsBet through its bid.

Betr already owns 19.6% of PointsBet and argues that combining the two businesses would give it over 10% market share in the sector. It has also obtained regulatory clearance from the Alcohol and Gaming Commission of Ontario (AGCO), while MIXI won approval from Australia’s Foreign Investment Review Board (FIRB) earlier this month.

Both sides have pursued complaints before the Australian Takeovers Panel as they seek to sway shareholders in a battle pitching MIXI’s upfront cash against Betr’s scrip-based growth story.