PointsBet board rejects Betr takeover in favour of MIXI deal

The news: PointsBet's board has unanimously rejected a takeover proposal by rival gambling outfit Betr Entertainment, concluding that the value of the offer is "materially below" the improved, $1.20-per-share bid made by Japanese entertainment giant MIXI Australia earlier this month.

The context: The board's decision followed due diligence investigations into the Betr proposal, which found that the value of the cost synergies identified by Betr were "materially overstated". The due diligence also concluded that revenue dis-synergies would reduce the net synergies and that there are "significant integration and implementation challenges" with the proposal.

PointsBet has consequently entered into a bid implementation deed with MIXI, which has agreed to make an off-market takeover bid for all the issued share capital of the betting group.