PointsBet rejects Betr bid, urges shareholders to accept MIXI offer
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The news: Online bookmaker PointsBet has rejected the latest takeover bid by rival outfit Betr and urged its shareholders to accept an off-market offer by Japanese entertainment group MIXI.
The numbers: Betr last week tabled an all-scrip offer of 3.81 Betr shares for every one PointsBet share.
PointsBet told investors this morning that the proposal is "materially inferior" to MIXI's latest cash offer of $1.20 per PoinstBet share.
The context: In an ASX release, PointsBet said Betr's latest offer is "highly conditional" and warned that its value will change over time given it is an all-scrip proposal.
The company noted that the cash value for shareholders is "uncertain given the low liquidity of Betr's shares" on the ASX.
PointsBet also said potential synergies with Betr are "materially overstated" by the suitor, and described increased exposure to Betr's business as "unattractive" due to its "less valuable and volatile VIP-heavy customer base", "unattractive product mix, with a sub-scale sports business", and "high levels of customer churn despite Betr's level of gratuity spend".
PointsBet confirmed that the MIXI takeover offer opened for acceptance today, with PointsBet's directors unanimously recommending shareholders accept the proposal.
The offer from MIXI, which holds a 9.15% interest in PointsBet, contains a 50.1% minimum acceptance condition.
MIXI's previous proposal, which was voted down by 19.9% shareholder Betr, failed to pass its 75% threshold last month.
