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Highlights
- Betr reaffirms bid despite rejection by PointsBet board
- PointsBet prefers MIXI’s revised offer over Betr’s proposal
- Share prices of both companies dip amid takeover uncertainty
A takeover tussle between two players in the Australian wagering sector has intensified as Betr Holdings reasserts its commitment to acquiring PointsBet Holdings Ltd, despite having its latest bid rejected. The move has stirred investor reactions, pushing both companies' share prices lower amid ongoing corporate drama.
As of mid-morning Tuesday, shares of Betr Investments Ltd (ASX:BETR) slipped 4.5% to AU$0.28, while PointsBet Holdings saw a marginal 0.4% dip, trading at AU$1.18. This follows PointsBet’s announcement that its board had dismissed Betr’s latest acquisition proposal—an offer to acquire shares at AU$1.33 each—in favour of an enhanced agreement with Japanese entertainment powerhouse MIXI.
Interestingly, MIXI’s offer only values PointsBet shares at AU$1.20, revised up from AU$1.03. Despite the lower per-share valuation, PointsBet’s board deemed MIXI’s proposal strategically superior. The board cited concerns over Betr’s claimed AU$40 million in cost synergies, calling them “materially overstated” and arguing that integration would come at a “significant cost.”
Betr’s CEO Andrew Menz pushed back strongly, calling the board’s stance “categorically” inaccurate in a formal response to the exchange. To reinforce confidence in its claims, Betr plans to submit a third-party assessment from a Big Four accounting firm to validate its synergy estimates before PointsBet shareholders vote on the MIXI proposal next Wednesday.
Adding another layer to the drama, Betr currently holds a 19.9% stake in PointsBet and has stated its intention to vote against the MIXI transaction. The company also expressed awareness of “several” PointsBet shareholders who support its offer, suggesting a potential derailment of the MIXI deal.
This isn’t the first time the PointsBet board has turned down Betr. An earlier offer made in February this year was similarly rejected in favour of pursuing a deal with MIXI.
As the acquisition debate heats up, both companies remain closely watched by market participants and retail investors alike, particularly within the landscape of ASX200 stocks, where PointsBet holds its position. The outcome of this corporate showdown could redefine the trajectory of the online betting segment in Australia.
