PointsBet Takeover Intensifies amid New Bidding
The battle for control of PointsBet has intensified following a new takeover offer from Betr, reigniting competition with rival suitor Mixi. Betr's latest bid values PointsBet at AUD1.22 (US$0.79) per share through a scrip-based arrangement that would grant shareholders 3.81 Betr shares for each PointsBet share held. This move reopens a protracted acquisition contest that began months ago and had seemingly been winding down after PointsBet's board endorsed Mixi's earlier cash offer.
LISTEN TO THIS ARTICLE:Betr asserts that when factoring in projected cost synergies, the effective value of its proposal rises to AUD1.89 (US$1.23) per share, significantly exceeding the AUD1.20 per-share (US$0.78) cash offer Mixi submitted in June. The Australian-based gaming company has steadily increased its stake in PointsBet to 19.6% since first approaching the operator in February, while making multiple revisions to its offer to strengthen its position.
Related: PointsBet Mixi Takeover Halted over Vote Counting ErrorDespite these efforts, PointsBet's board has consistently rejected Betr's previous proposals, citing concerns about funding certainty and highlighting that shareholders would receive equity in a less liquid company. Mixi's cash proposal remains the only bid formally backed by PointsBet's board, which cleared a scheme vote on June 25. However, that transaction still requires majority shareholder acceptance under an off-market fallback mechanism and final regulatory approvals.
Prior to the new proposal from Betr, PointsBet had maintained that only the Mixischeme was capable of being accepted by shareholders. The latest scrip offer from Betr appears to have challenged that narrative, reintroducing uncertainty into the takeover timeline. Betr has estimated annual cost savings of AUD44.9 million (US$29.2 million) through operational synergies and suggested that the combined company could achieve a re-rating upon joining the ASX 300 index.
In contrast, PointsBet has voiced skepticism over the feasibility of Betr's projected synergies. It argues that customer base overlap and the operational complexities involved in separating the Canadian business would reduce the effectiveness of those savings.
The board has also questioned the liquidity of Betr shares and stated that the company's valuation assumptions are based on aggressive projections, particularly the use of a 10x multiple on expected synergies and a share price from a prior capital raise rather than current market levels.
Proxy counts ahead of the postponed June 25 scheme meeting indicated that more than 90% of votes not affiliated with Betr supported Mixi's offer. However, that vote was delayed following indications from Betr that it would submit a revised bid. Since then, Mixi has received regulatory clearance from Ontario authorities, fulfilling one of the remaining conditions for its AUD402 million (US$261.7 million) offer, but still needs to secure a majority of shareholder support.
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Betr's renewed offer, which is subject to approval by its own shareholders but contains no minimum acceptance threshold, is scheduled to open on July 31 and close on September 8. The company has indicated that further adjustments to its proposal may still be made. The bid remains contingent on regulatory approval from gaming authorities, as well as support from PointsBet shareholders.
Despite the escalation, PointsBet has maintained that its shareholders should take no immediate action in response to what it describes as the "Unsolicited Betr Scrip Offer." The company is preparing a detailed analysis to assist shareholders in evaluating the proposal.
In prior statements, PointsBet criticized Betr's offer for lacking cash certainty and being overly reliant on achieving optimistic synergies, which the board argues are materially overstated. It has also flagged potential revenue losses resulting from integration challenges as a risk factor.
The PointsBet board has now unanimously recommended the Mixi offer in the absence of a superior proposal. Each board member has also committed to accepting the deal for their own shares. Mixi's offer represents a 44.6% premium to PointsBet's last trading price prior to the onset of takeover speculation earlier this year.
It's fully funded from Mixi's parent company reserves and does not include any financing conditions. Mixi has highlighted that its bid delivers cash value certainty for all PointsBet shareholders, in contrast to Betr's conditional equity-based approach.
Mixi had also secured pre-bid commitments from shareholders representing over 9% of PointsBet's stock, enhancing the likelihood of crossing the majority ownership threshold required for the deal's completion. The offer remains open until mid-August unless extended, keeping the window open for further developments in what has become a highly contested acquisition process.
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