MIXI increases takeover offer for PoinstBet, but only if rival suitor Betr cashes out
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The news: Japanese entertainment business MIXI intends to increase its takeover pitch for online bookmaker PointsBet, although the improved price is subject to acquiring at least a 90% stake in the company which would mean buying out the stake held by rival suitor Betr.
The numbers: MIXI intends to increase its offer price of $1.25 in cash per PointsBet share it does not already own to $1.30. However, this will only apply if the company acquires at least a 90% interest in PointsBet, at which point it will be required to buy out all remaining shareholders.
The expiration of the off-market takeover bid has been extended to 29 August. Shareholders that have already accepted the offer will be eligible for the higher price if it is realised.
The context: As at 20 August, MIXI and its associates had a 37.12% interest in PointsBet. This included shares initially owned by the company in addition to takeover offer acceptances by the PointsBet board, reportedly from Stake.com founder Ed Craven and through pre-bid acceptance agreements.
MIXI said this latest offer is the “last and final all cash offer” and that the offer period would not be extended further, unless required by the Corporations Act.
If the increased offer price is realised, MIXI said it would be required to pay just under $438 million.
Meanwhile, rival bidder Betr owns a 19.6% stake in PointsBet. Its revised all-scrip offer for 4.219 Betr shares per PointsBet share opened for acceptance on 18 August.
PointsBet lodged its target statement in relation to the Betr bid with the Australian Securities and Investments Commission on Thursday, with the board maintaining its unanimous recommendation that shareholders reject the offer.
What they said: “MIXI Australia’s offer is for certain all cash as opposed to the Betr offer which is predicated on uncertain value of Betr scrip and timing of synergies, which have been characterised by the PointsBet Board as 'materially overstated' and which exclude revenue dis-synergies and implementation costs,” MIXI said in a statement to the exchange.
