In a decisive move that could end the takeover saga for its Australian operations, PointsBet has formally rejected the latest offer from Betr Entertainment.
The board delivered a sharp rebuke to the bid, labeling it “materially inferior” and reaffirming its strong recommendation for a rival proposal from Japanese entertainment giant Mixi.
Betr’s most recent attempt was an all-scrip, off-market takeover bid, offering 3.81 Betr shares for every one PointsBet share. While Betr valued this at approximately $1.22 per share—slightly higher than Mixi’s $1.20 cash offer—the PointsBet board dismissed this valuation, citing the volatility and inferior value of an all-stock proposal compared to the certainty of cash.
In its official statement, PointsBet did not hold back in its critique of Betr’s business model, deeming it “unattractive” to its shareholders.
The board raised significant concerns, highlighting Betr’s “less valuable and volatile VIP-heavy customer base” and a product mix that is “heavily skewed” towards racing. PointsBet also argued that Betr’s claims regarding potential synergies were “materially overstated,” noting that customer crossover would likely create revenue dis-synergies.
PointsBet statement:
There are significant integration and implementation challenges with the Unsolicited Betr Scrip Offer, with betr assuming that PointsBet’s Canadian business can be carved out without any resulting stranded costs. We do however note that it is not a condition of Betr’s bid that the Canadian business is carved out.
Furthermore, the board pointed to significant integration challenges and the highly conditional nature of Betr’s offer, which still requires uncertain shareholder and regulatory approvals.
In contrast, Mixi’s offer is presented as a stable and secure path forward. The off-market takeover bid officially opened this week and has already secured all necessary gaming regulator approvals.
Mixi has also locked in 17.18% of votes through pre-bid acceptance agreements, putting it in a strong position to meet the 50.1% minimum acceptance condition before the offer closes on August 25.
This decisive rejection from PointsBet’s board effectively solidifies Mixi’s position as the sole recommended suitor.
