MIXI increases acquisition offer for PointsBet – M&A

MIXI has made a significant move by submitting an enhanced takeover offer for PointsBet. This bid, valued at AUS$402 million, aims to outdo a competing offer from Betr Entertainment, which stood at $360 million.

Back in February, PointsBet had given the green light to an initial takeover proposal from MIXI’s Australian arm, amounting to $353 million. This offer included a cash payout of $1.06 per share for PointsBet shareholders, reflecting a considerable 27.7% premium compared to the closing price on February 25.

However, Betr managed to position itself favorably with the PointsBet board considering its proposal as “superior” in May. Even though Betr’s initial offer, made before its rebrand from BlueBet, amounted to $360 million, MIXI decided to step up its game with a fresh bid.

MIXI’s improved proposal now offers PointsBet shareholders $1.20 per share, representing a substantial 44.6% premium over the closing price of $0.83 on February 25. This elevated offer places the enterprise value of PointsBet at $402 million, $49 million higher than the previous value.

Upon confirming this news, PointsBet promptly halted trading on the Australian Stock Exchange, intending to resume once a decision has been finalized. In an effort to sweeten the deal, MIXI introduced an “off-market takeover” alternative, where shareholders would still receive $1.20 in cash per share if they choose an alternate route.

The ongoing developments have led to a rescheduling of the scheme meeting initially set for June 12, now slated for June 25 following approval by the Federal Court of Australia. Despite the delay, the PointsBet board has unanimously recommended that shareholders vote in favor of this improved proposal, as long as there are no superior offers on the table.

With Betr still in the running, PointsBet and Betr are conducting due diligence on their proposal, focusing on synergies and Betr’s scrip. Betr’s proposal comprises a cash portion of $240 million to $260 million, along with scrip consideration ranging from $100 million to $120 million, in addition to projected synergies of at least $40 million annually.

As PointsBet and Betr navigate through due diligence, the PointsBet board continues to evaluate both proposals in light of the superior offer from MIXI. Shareholders and the market await further developments on the evolving takeover saga among these key players in the industry.