PointsBet’s MIXI Deal Faces Betr’s Vote Recount Challenge
PointsBet shareholders voted overwhelmingly to approve a $402 million takeover by MIXI Australia, setting the stage for the Japanese entertainment giant to acquire the Australian sportsbook at $1.20 per share, a 44.6% premium over the February closing price. But the celebration was cut short by Betr Entertainment.
Shareholders Back MIXI, But Drama Erupts
With 95.69% of votes (350.2 million) in favor and only 4.31% (81.9 million) against, MIXI hailed the “strong support” from investors. But Betr Entertainment, PointsBet’s largest shareholder at 19.9%, cried foul, alleging its vote against the deal was “impermissibly excluded” and demanding a recount.
Betr, which had pushed a rival bid, claims it lodged a valid proxy vote against the MIXI deal and never revoked it. The company warned it will challenge the vote’s validity in court at a June 26 hearing if PointsBet doesn’t recount and include its vote.
PointsBet fired back, calling Betr’s claims “factually inaccurate and without basis,” stating a senior Betr officer virtually logged into the meeting, revoked the proxy, and failed to cast a vote, per records from share registry Computershare.
Why MIXI Won Out
The MIXI deal, valued at AUD 402 million ($261 million), was a straightforward all-cash offer, fully funded and cleared by Australia’s Foreign Investment Review Board. PointsBet’s board unanimously backed it, citing its stability over Betr’s “highly conditional” and “uncertain” proposal.
Betr’s offer, a mix of cash and 3.81 Betr shares per PointsBet share, was pegged at $360 million, with an implied value of $1.086 per share, well below MIXI’s $1.20. PointsBet also slammed Betr’s claimed $40 million in annual synergies as “materially overstated,” pointing to a 65% customer overlap that risked revenue losses rather than gains.
Stephen Crystal, CEO of SCCG, summed it up: “PointsBet needed certainty. MIXI provided that.” He noted that while Betr’s $1.33 per-share pitch grabbed headlines, its reliance on volatile stock and risky VIP customers didn’t hold up under scrutiny. The board also liked MIXI’s promise to vest management payouts immediately, ensuring a smooth transition.
A Legal Fight Looms
Betr’s not backing down. Holding nearly 20% of PointsBet’s shares, it insists its vote was wrongly ignored and is gearing up for a courtroom clash.
“We expect the chair to immediately conduct a recount,” Betr stated, threatening legal action if the issue isn’t resolved before the June 26 court hearing. PointsBet, confident in its records, plans to push forward with the MIXI deal’s final court approval.
This dispute caps months of a heated bidding war. Betr briefly gained traction in May when its offer was deemed “superior,” but MIXI’s improved $402 million bid in June tipped the scales.
With regulatory approval in Ontario still pending, the deal’s not done yet, and Betr’s challenge could throw a wrench in the works.
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