PointsBet faced a significant escalation as MIXI presented its final, superior offer for acquisition.
The ongoing bidding war for Australian sports betting company PointsBet has taken a significant turn, with Japanese tech conglomerate MIXI making an all-cash offer that has been unanimously backed by PointsBet's board.
Final Offers and Values
MIXI's final offer is an all-cash bid of AU$1.25 per PointsBet share, valuing PointsBet at approximately AU$460 million (US$304.1 million). This represents a 44.6% premium on PointsBet’s share price before the bid was publicised.
Betr, on the other hand, has improved its all-scrip offer to around AU$1.35 per share based on recent trading prices. However, MIXI's offer remains superior in the eyes of PointsBet's board.
Conditions and Preferences
PointsBet's board has expressed preference for MIXI's cash offer, citing deal certainty and regulatory clearances in Australia and Canada. They view Betr's scrip-based offer as materially inferior, conditional, and less certain due to the all-scrip nature and associated regulatory and business risks.
MIXI's offer requires a minimum acceptance of 50.1% to proceed and is open until 7:00 pm Melbourne time on 25 August, unless extended or withdrawn. In contrast, Betr's offer has faced regulatory pushback, with Australia's Takeovers Panel issuing interim orders restraining Betr from sending its bidder's statement to shareholders due to disclosure issues.
Shareholder Votes and Stakes
MIXI already holds about 24.5% of PointsBet shares directly, plus 0.7% through institutional acceptance facilities, effectively locking in significant pre-bid support. Betr holds approximately 19.6% of PointsBet shares but lacks board support. PointsBet directors collectively hold 8.02%, with many indicating intention to accept MIXI’s offer.
Current Situation
Despite Betr's higher offer and insistence that it will create more long-term value for shareholders, PointsBet's board continues to urge shareholders to accept MIXI's all-cash bid, viewing it as more secure and sustainable. Betr has called for shareholders to wait until both offers are officially open before taking action due to ongoing regulatory and bid developments.
The Takeovers Panel’s involvement and the competing offers mean the shareholder vote date has not been finalized yet.
Latest Developments
Notably, MIXI has done away with the 50.1% minimum acceptance condition for the acquisition, making its offer unconditional. The latest MIXI bid is a slight improvement on the company's previous offer, with the per share value increasing from AU$1.20 to AU$1.25. The offer from MIXI Australia will be available until 7 pm on August 25, 2022.
As the deadline approaches, the outcome of the bidding war depends on shareholder decisions and regulatory rulings. Shareholders are advised to carefully consider their options and make informed decisions based on the latest developments.
Read also:
- "Germany appears less environmentally friendly compared to Texas, according to Harald Lesch's climate documentary"
- Texas Public Utility Commission issues $216 million loan for NRG's 456-megawatt gas power plant
- Ford Intends to Launch an Economical Electric Pickup for $30,000, featuring a Compact Battery and on a Novel, Universal Chassis
- Procedure initiated for contract granting by the Commission.
