MIXI formally lodges second takeover bid for PointsBet
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More news: PointsBet has announced that Japanese entertainment giant MIXI has formally lodged its off-market all-cash takeover bid with the Australian Securities and Investment Commission, with the news landing a day after rival suitor Betr’s pitch.
PoinstBet directors unanimously recommend that shareholders back the MIXI deal, which has a 50.1% minimum acceptance condition and is offering $1.20 in cash per PoinstBet share.
MIXI has already secured acceptances of 17.18%. This includes 8.02% of shares held by PointsBet directors, who intend to accept the offer in the absence of a better one, and pre-bid acceptance agreements from Long Short Equity Management (2.76%) and Singapore-based Pictet Asset Management (6.4%).
An initial $402 million MIXI takeover proposal fell over after it failed to get the requisite support at a PointsBet shareholder vote in June.
Under a bid implementation deed entered into before the vote, MIXI committed to an off-market takeover offer if the initial deal did not receive the requisite shareholder support.
According to an earlier PointsBet statement, MIXI’s bid is not waiting on any gaming regulatory approvals because it’s been greenlit by the Alcohol and Gaming Commission of Ontario and the Northern Territory Racing and Wagering Commission.
PointsBet tells shareholders to ignore Betr’s all-scrip takeover bid
The news: Sportsbetting company PointsBet has told its shareholders to “take no action” in relation to Betr’s proposed all-scrip takeover, as the rival firm continues its campaign to outbid Japanese entertainment company MIXI.
The numbers: On Wednesday evening, Betr announced it had issued a takeover offer of 3.81 Betr shares for every PointsBet share it did not already hold. Based on a $0.32 Betr share price, this equates to $1.22.
In its argument against the bid, released on Thursday morning, PointsBet said the Betr offer is only worth $1.03 per PoinstBet share based on Betr’s 20 trading day market volume-weighted average price ending 16 July.
An off-market MIXI cash takeover offer of $1.20 per PointsBet share, which offers a 50.1% minimum acceptance condition, is still under consideration and is unanimously recommended by the PointsBet board.
The context: Betr, which holds a 19.6% interest in PointsBet, has been trying to outbid MIXI for months.
In June, a $402 million takeover proposal from MIXI did not go through. After a technical issue that delayed the final outcome, the initial MIXI deal ultimately only received 70.48% of supportive votes, which was short of the 75% threshold.
What they said: “PointsBet shareholders are advised to take no action in relation to the Unsolicited Betr Scrip Offer or any documentation provided by Betr until PointsBet provides further information in relation to the Unsolicited Betr Scrip Offer,” PointsBet’s statement to the exchange reads.
“PointsBet shareholders should consider the information in the Betr Target’s Statement prior to making any decision regarding the Unsolicited Betr Scrip Offer.”
