PointsBet flags 'significant support' for a MIXI takeover deal
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The news: Betting company PointsBet has diminished the renewed takeover offer that rival Betr intends to make. It has flagged “significant support” for Japanese entertainment company MIXI's takeover offer, based on an early count of proxies ahead of Wednesday’s vote.
The numbers: At 10:26am AEST PointsBet shares had risen 0.42% to $1.20 whereas Betr shares had fallen 5% to $0.28.
The context: Following the close of proxies for the MIXI Scheme Meeting this morning, PointsBet told the exchange that “early indications are that the requisite majority will not be achieved” at Wednesday morning’s shareholder vote, although the proxy count is not finalised.
However, PointsBet flagged that when removing Betr — which holds a 19.9% stake in PoinstBet — votes from the proxy share “it is clear that there is significant support for the MIXI Scheme by PointsBet shareholders, with over 90% in favour”.
The deal requires 75% of total votes cast in its favour and support from more than 50% of shareholders. If it does not pass, MIXI has agreed to make an off-market takeover bid with a minimum acceptance condition of 50.1%.
After Betr’s attempt to outbid MIXI’s all-cash $1.20 per share at the start of last week was rejected by the PoinstBet board, Betr announced its intention to make an all-scrip off-market takeover on Friday, while its chair Matt Tripp sent an open letter to PointsBet shareholders pleading his case.
On Monday, PointsBet stressed that Betr’s potential takeover, its third takeover bid, values PointsBet shares at $1.05 per share based on Betr’s five-day volume weighted average price and $1.14 based on its Friday close price.
PoinstBet also said it has acted “constructively and in good faith in all dealings with Betr” amid speculation from the potential suitor that this was not the case.
What they said: “As the market is aware, PointsBet has dealt with Betr on various non-binding indicative offers for some time,” PointsBet said in a statement to the exchange.
”All have been accompanied by significant media commentary and speculation, while none have culminated into a formal proposal capable of consideration and acceptance by PointsBet shareholders.”
The source: ASX
