The battle for the acquisition of the Australian gambling giant PointsBet continues, with Mixi’s proposal currently holding greater value than a different offer from Betr.
Even though both companies have made several offers, PointsBet’s executives have not yet been fully convinced by Betr’s latest plan.
PointsBet had, at one point, suggested that Betr’s offer might be “better” than Mixi‘s. However, in its most recent announcement on Monday, the company stated clearly: “Right now, only one deal can be accepted by PointsBet shareholders, which is the Mixi plan.”
PointsBet added that if Betr officially presents the full details of its possible takeover, the PointsBet Board will review them and share its advice with shareholders.
PointsBet states that Betr’s current offer is valued at AU$ 1.14 per share, which is “much lower” than the AU$ 1.20 per share cash offer from Mixi.
Betr’s most recent offer included an option for shareholders to receive shares in Betr (called an “all-scrip deal”) or choose a buy-back option where Betr would buy back some of those shares for cash.
However, PointsBet has openly criticized comments from Betr Chairman Matt Tripp about this part of the offer. PointsBet believes there is little reason for current Betr shareholders to approve the buy-back.
PointsBet argues that even if the buy-back isn’t approved, Betr could still go ahead with its offer. Because of this, PointsBet views Betr’s statements about providing “quick cash for shareholders” as misleading, as there is no certainty of the buy-back happening or when.
Furthermore, PointsBet has suggested that Betr’s customer base is “less valuable” and has “many VIP players” (high rollers), which can lead to big swings in revenue. They also pointed out that there is a significant overlap in customers between the two companies.
Their data shows that “Sixty-five percent of the total money bet and 61 percent of the total profit for both Betr and PointsBet comes from customers who have accounts with both companies.” This suggests that combining the businesses might not bring as much new revenue as hoped.
Regarding the acquisition offer of Mixi, PointsBet has confirmed that its share registry is now reviewing proxy votes for the proposed deal. Early signs suggest that while the required number of votes may not be met overall, if Betr’s votes are not counted, there is strong support for the Mixi plan among other PointsBet shareholders, with over 90% in favour.
The final, checked voting results will be shared with the market just before the Mixi plan vote, which is set for 9:00 AM on Wednesday, June 25, 2025.
