PointsBet Board Rejects Betr Takeover Offer, Prefers MIXI Deal

It does not appear that an Australian gaming operator is going to end up in the hands of Betr.


- PointsBet tells shareholders it prefers to take an offer from Japanese digital and home entertainment business MIXI
- The Australian video gaming business disagreed with Betr's synergies estimate and "less valuable" VIP consumer base
- Betr used 3.81 per share, equal to 1 PointsBet share, but there are money certainty concerns


PointsBet's Board unanimously turned down an unsolicited, conditional off-market all-scrip takeover offer from the U.S.-based fantasy and sports wagering operator due to cash certainty issues and "unsightly" elements of Betr's business.


Instead, the Australian and Canadian sportsbook and online casino owner of BlueBet announced it chooses a deal made by a Japanese digital and entertainment business.


"The PointsBet Board has identified, with the support of external advisors, that the Betr Proposal is materially inferior to the MIXI Takeover Offer," the company specified in a news release.


PointsBet didn't like Betr's characterization of worth and indicated a substantially less monetary offer when calculating volume-weighted average rates over relevant trade rates.


PointsBet was likewise concerned with a possible change in the worth of the scrip offer, due to the low liquidity of Betr's shares. That might cause an absence of cash certainty if PointsBet investors chose to sell shares.


Business concerns


Another significant sticking point for PointsBet is the uncertainty of the result and timing of Ontario gaming approvals, which MIXI has actually already finished.


PointsBet took exception to Betr's "less valuable and unpredictable VIP-heavy customer base."


PointsBet stated 50% of Betr's win is generated from 20 clients.