MIXI takeover offer for PointsBet extended after taking 50% voting control
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The news: Japanese entertainment group MIXI has increased its voting power in online bookmaker PointsBet to more than 50%, amid an ongoing takeover battle with fellow shareholder Betr Entertainment.
The numbers: PointsBet confirmed that MIXI's takeover offer, which was due to expire at 7pm AEST, will now be extended by two weeks to 12 September.
Meanwhile, rival bidder and 19.6% shareholder Betr has submitted an application to the Takeovers Panel, claiming that the decision by the PointsBet board on 25 August to vest performance rights shares — representing 3.09% of its share capital — was "unacceptable" after "all or substantially all" of those shares "appear to have been immediately accepted into the MIXI offer".
Betr has sought final orders to require MIXI to offer withdrawal rights to any PointsBet shareholders who accepted the company's offer on or from 24 August. No decision has yet been made by the sitting panel whether to conduct proceedings.
The context: In an update on Thursday, PointsBet said that MIXI had increased its interest to 46.72% and that its board continues to unanimously recommend that shareholders accept the MIXI takeover offer in the absence of a superior proposal.
Earlier this week, Betr increased its offer for each PointsBet share it does not already own to 4.375 Betr shares, up from 4.219. The company also raised the value of its proposed selective buy-back from $80 million to at least $90 million, which is subject to Betr shareholder approval and would take place after the close of Betr’s takeover offer.
Despite MIXI’s offer coming in lower than Betr’s, at either $1.25 per share or $1.30 per share if its proposal receives 90% support, PointsBet has maintained concerns about the Betr offer.
PointsBet also today announced its FY25 results, narrowing its full-year loss from $42.3 million to $18.2 million, and reporting a 6% rise in revenue to $261 million.
What they said: Asked about a "material decline" in the Australian wagering market in FY25 during PointsBet's investor call today, managing director and CEO Samuel Swanell said: "... It's pretty clear that you look at the market leaders, Sportsbet, the Entain Group with Ladbrokes and Neds and Tabcorp yesterday — that obviously makes up a large proportion of the market — that the market in Australia has not grown at a net win level, which is obviously what counts, but even more so at a turnover level, if you want to go back to that top line number".
