Betr has renewed its bid to acquire PointsBet with a revised scrip-based offer, valuing the bookmaker at A$1.22 per share.
This reignites a months-long takeover battle already marked by board pushback and a competing cash bid from Japan’s MIXI.
Under the updated proposal, PointsBet shareholders would receive 3.81 Betr shares for each of their existing shares. Betr claims the deal could be worth up to A$1.89 per share when factoring in projected cost synergies, significantly higher than MIXI’s A$1.20 per-share cash offer made in June.
Betr initially approached PointsBet in February and has since acquired a 19.6% stake while repeatedly improving its offer. However, PointsBet’s board has rejected each proposal, citing concerns over Betr’s funding and the liquidity of its shares, stating that MIXI’s offer remains superior.
MIXI’s bid, the only one backed by PointsBet’s board, was approved via scheme vote on 25 June. It still requires over 50.1% shareholder acceptance through a fallback off-market offer, as well as final regulatory approvals.
MIXI’s earlier endorsement by PointsBet’s board, along with the company’s claims that Betr had overstated its financial figures, had appeared to conclude the takeover contest, until Betr escalated the situation again on 16 July.
Betr framed the move as the beginning of long-term value creation for both companies’ shareholders. It emphasized expected annual cost savings of A$44.9 million and the potential for the combined entity to be included in the ASX 300 index, which it believes would increase its valuation.
In contrast, PointsBet maintained last month that MIXI’s proposal remained the only viable deal available for shareholders to approve, dismissing Betr’s earlier 3.81-for-1 share offer, which was then valued at A$1.09 per share.
Betr argues that the difference in valuation is due to using the A$0.32 price from its May capital raise, which was oversubscribed, rather than the thinner value from on-market trading. The operator also applied a 10x multiplier to its projected cost savings, which it claims could be realized within two years.
PointsBet responded by saying that expected synergies would be reduced due to overlapping customer bases and the complicated nature of separating its Canadian business. It also criticized Betr’s claims around liquidity, calling them misleading.
Before the original 25 June shareholder meeting, over 90% of proxy votes not linked to Betr were in favor of MIXI. However, that vote was delayed when Betr indicated it would submit a new, improved offer.
Since then, MIXI has received regulatory approval in Ontario, removing one of the final conditions tied to its A$402 million bid. It now only needs majority shareholder backing to move forward. Meanwhile, Betr’s revised offer, set to launch on 31 July and run until 8 September, does not include a minimum acceptance requirement and may be increased again before closing.
