PointsBet takeover battle heats up as Betr’s new bid faces board rejection

The contest for control of PointsBet Holdings has intensified after Betr Entertainment submitted a fresh, all-share takeover offer, valuing PointsBet at $1.22 (£0.91) per share.

Despite Betr’s renewed push, PointsBet’s board has firmly stated that the new bid remains ‘materially below’ a competing offer from Japanese tech group MIXI, which was improved earlier this month and valued at AU$402m (£191.7m).

Betr’s latest proposal offers PointsBet shareholders 3.81 Betr shares for each PointsBet share, with an option for a selective buyback capped at $80m (£38.1m), potentially rising to $200m (£95.3m) if Betr secures at least 90% of shares.

The offer, which Betr Chairman Matt Tripp described as providing “real value, execution certainty, and the leadership experience needed to deliver,” is not subject to a minimum acceptance condition, a feature Betr says offers ‘execution certainty’ for shareholders.

However, PointsBet’s board unanimously rejected the bid, citing several concerns. The board highlighted that, based on the June 19th closing price, Betr’s offer had an implied value of $1.086 (£0.52) per share, significantly lower than the $1.20 (£0.57) per share in cash offered by MIXI.

PointsBet’s leadership also pointed to what it described as ‘critical shortcomings’ in Betr’s proposal, including overestimated synergies, underestimated revenue losses, and challenges associated with integrating the two businesses.

MIXI’s improved offer, which PointsBet has now formally backed, represents a 44.6% premium over the company’s February closing price and surpasses both Betr’s current and previous proposals.

The takeover would require a minimum acceptance of 50.1% from PointsBet shareholders and regulatory approval in Ontario, Canada, PointsBet’s remaining international market after selling its US business to Fanatics in 2024.

Betr, which already owns 19.9% of PointsBet, has announced it will vote against the MIXI scheme at the upcoming shareholder meeting.

PointsBet shareholders are scheduled to vote on the MIXI proposal on June 25th, with further updates expected as the process unfolds.

As the bidding war continues, PointsBet has confirmed that it received approval from Australia’s Foreign Investment Review Board for the MIXI deal, clearing a major regulatory hurdle.

For now, the board’s position is clear, MIXI’s cash offer is preferred, while Betr’s new all-share proposal falls short of the mark.