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PointsBet has officially turned down a takeover offer from Betr and instead decided to support a cash offer from Japanese company MIXI. The board said MIXI’s deal is more stable, simple, and better for shareholders.
Why PointsBet Rejected Betr’s Proposal
Betr had offered an all-scrip deal, where 3.81 Betr shares would be given for each PointsBet share. But the PointsBet board said no to this.
Why?
- They called Betr’s offer “materially inferior” to MIXI’s $1.20 per share cash bid.
- They also pointed out that Betr’s shares are low in trading volume, meaning their value is unstable.
- The board raised concerns about Betr’s business strength, saying they weren’t confident in Betr’s ability to integrate operations or provide long-term value.
In simple words, the board didn’t see Betr’s plan as safe or reliable for investors.
Why MIXI’s Offer Stands Out
MIXI already owns 9.15% of PointsBet and has now made an off-market offer for more shares.
Here’s why PointsBet likes it:
- All cash deal: Investors get $1.20 per share in cash.
- No need for shareholder voting: Unlike previous offers, this one doesn’t require 75% approval.
- Lower execution risk: The offer only needs 50.1% acceptance to go ahead.
- Clear and stable value: No dependency on fluctuating share prices like in Betr’s deal.
The board said this deal is “certain and simple”, giving direct value to shareholders without extra complications.
What Happened to the Previous MIXI Bid?
Earlier, MIXI tried to acquire PointsBet but failed because Betr, which owns 19.9% of PointsBet, voted against it. That offer needed 75% approval and didn’t pass.
This time, MIXI has changed its approach, making the deal easier to execute and reducing the chances of it being blocked again.
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