The competition for ownership of PointsBet is heating up as Betr Entertainment has increased its all-stock proposal to AU$1.40 per share, countering the cash offer from Japan’s Mixi group.
The Australian sports betting firm stated that its updated share-swap proposal «is superior to Mixi’s cash bid of $1.25 per PointsBet share,» with the new terms adjusting the exchange ratio to 4.375 Betr shares for each PointsBet share.
In addition to enhancing the share price offer, Betr has committed to raising its selective buy-back fund from a minimum of AU$80 million to AU$90 million. «Betr will proceed with the selective buy-back irrespective of the acceptance levels it receives under the offer, contingent on the required resolutions being approved at the upcoming shareholder meeting,» the company announced.
Moreover, Betr has presented a new non-binding proposal to fully acquire PointsBet’s Australian operations for AU$370 million, or AU$0.465 per share. This latest offer signifies a 37 percent premium over PointsBet’s closing price of AU$0.34 on May 23.
PointsBet acquisition battle between Betr and Mixi intensifies
This proposal would enable Betr to gain complete control over PointsBet’s Australian licenses, technology, intellectual property, workforce, and other assets. PointsBet offers an extensive array of sports and racing betting services, including esports betting for major games like CS2, Dota 2, and League of Legends.
To facilitate ongoing negotiations, Betr has extended the exclusivity period until September 6, limiting PointsBet from engaging with other potential buyers unless legally obligated to do so.
Mixi has positioned PointsBet as a fundamental part of its global growth strategy and dismissed Betr’s latest offer, asserting that it is «highly unlikely» Betr can attain control while criticizing the competing firm’s claimed synergies and buy-back plan.
Consistently, PointsBet’s board has recommended Mixi’s cash offer of $1.25 per share, or $1.30 if it achieves 90 percent acceptance, citing the certainty of the proposal. Mixi reported that it would not submit any shares to Betr and has already garnered support from 38.13 percent of shareholders. Its bid is set to conclude on August 29.
However, in light of the latest developments, the PointsBet board has indicated that Betr’s updated proposal might offer better prospects than the company on its own, although it remains subject to shareholder approval, regulatory clearance, and thorough due diligence.
If the agreement proceeds, Betr may also offer short-term financing to maintain operational continuity for PointsBet Australia in case there are delays in finalizing the transaction. Upon successful completion of negotiations, a binding agreement is anticipated, and shareholders will receive updates accordingly.
