Australian sports betting platform PointsBet recently confirmed that it received a proposal from Betr Entertainment. This offer, PointsBet claims, is better than the one currently on the table from MIXI Australia Pyt. Ltd., a wholly-owned subsidiary of Japan-based sports betting provider MIXI Inc.
In an official statement, released earlier today, PointsBet said that it is actively considering Betr Entertainment’s proposal with the help of external advisers. The company is doing its due diligence to run a fine comb through the particulars of the deal and will make a decision accordingly.
A Quick Overview of the Key Points
- Betr Entertainment’s deal is worth AU$ 360 million.
- MIXI Australia Pyt. Ltd. offered AU$ 410 million in February 2025.
- The MIXI deal promises shareholders cash considerations of $1.86 per share, a 27.7% premium over PointsBet’s closing price on February 25, 2025.
- PointsBet said its board has recommended that shareholders vote for MIXI’s scheme.
What is Betr Offering?
Betr’s proposal comprises a mixed consideration structure, where 57% of the proposed value is paid out in cash and the remaining 43% in scrip. The PointsBet board plans to evaluate the offer, keeping Betr’s representatives in the loop, to try and read the deal’s full potential.
PointsBet will focus on assessing the strategic alliance and potential that Betr proposes and the valuation of the scrip, as the latter determines the overall value of the deal. PointsBet plans to carry out this assessment in phases, starting with factors influencing the deal’s valuation.
PointsBet is yet to release an official statement about where it stands on the MIXI deal. However, the company is legally required to evaluate Betr’s proposal as part of its fiduciary duties, which mandates that bona fide offers be considered to ensure shareholders receive the best value. As per the latest information, the PointsBet board has recommended that shareholders vote in favour of the offer made by MIXI Australia Pyt. Ltd.
PointsBet Board Leaning Toward MIXI
Under MIXI’s scheme, PointsBet shareholders will receive cash considerations worth $AU1.86 per share. This deal is worth AU$ 410 million and will boost the PointsBet share price even before the official merger. The offer is currently under evaluation and awaits shareholder voting, which is scheduled to happen sometime later this year.
In February 2025, MIXI proposed to acquire all of PointsBet shares through a legal arrangement. PointsBet’s legal team believe that this offer is in the shareholders’ best interest. Therefore, the board is simply evaluating Betr’s proposal at the moment as per the legal requirement and in good faith.
The PointsBet board has assured shareholders that they will be made aware of any future developments. If, at the end of the due diligence process, the experts find more value in Betr Entertainment’s proposition, the PointsBet board may recommend that shareholders vote in its favour. However, no such announcements have been made yet.
Betr’s proposal has placed PointsBet at an interesting crossroads, as competing interests may alter the course of the company’s strategic future. While the due diligence in Betr’s offer does not mean the board will change their stance on the MIXI proposal, it gives them an opportunity to try and negotiate for a better deal.