PointsBet Board Rejects Betr Takeover Offer, Prefers MIXI Deal

It doesn't appear that an Australian video gaming operator is going to end up in the hands of Betr.


- PointsBet informs shareholders it prefers to take an offer from Japanese digital and entertainment company MIXI
- The Australian gaming company disagreed with Betr's synergies estimate and "less important" VIP consumer base
- Betr provided 3.81 per share, equal to 1 PointsBet share, but there are cash certainty issues


PointsBet's Board all 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 concerns and "unattractive" aspects of Betr's organization.


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


"The PointsBet Board has actually figured out, with the help of external advisors, that the Betr Proposal is materially inferior to the MIXI Takeover Offer," the business stated in a news release.


PointsBet didn't like Betr's characterization of value and indicated a considerably less monetary offer when calculating volume-weighted typical costs over appropriate trade prices.


PointsBet was also worried about a possible modification in the value of the scrip deal, due to the low liquidity of Betr's shares. That could cause a lack of money certainty if PointsBet shareholders chose to offer shares.


Business issues


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


PointsBet complained Betr's "less valuable and unpredictable VIP-heavy consumer base."


PointsBet said 50% of Betr's win is generated from 20 customers.