Betr Accuses PointsBet of Failing to Act Sincerely, Alleging Bias Towards MIXI's Proposal
Betr Takes a Stand Against Pointsbet's Preferred Suitor
Betr Entertainment Limited has made it clear that they will vote against MIXI's takeover proposal, stating that their own proposal is superior to Pointsbet's choice. This comes after Pointsbet announced their decision to move forward with MIXI as their preferred suitor.
Betr Questions Pointsbet's Decision
In a recent ASX release, Betr expressed regret that Pointsbet has chosen to proceed with MIXI Australia's takeover proposal, despite the significant advantages offered by Betr's proposal. Betr's board is confident that their proposal, which promises AUD 40 million in synergies, would be of higher value to Pointsbet than the revised MIXI takeover deal.
For context, the MIXI arrangement would deliver an approximate value of AUD 1.20 per share. Considering Betr's projected synergies, their deal would deliver a value of AUD 1.33 per share instead.
While Pointsbet has expressed doubts about Betr's ability to optimize its purported synergies, Betr emphasizes its impressive track record in delivering shareholder value through successful acquisitions. Betr further raises concerns about Pointsbet's decision to opt for the MIXI takeover, questioning whether they have acted constructively and in good faith to fully understand the benefits of the Betr Proposal for their shareholders.
Betr Stands Firm on AUD 1.33 Value
As the largest shareholder in Pointsbet, Betr has announced that it will vote against the MIXI proposal at the upcoming meeting on June 25. Betr suggests that there are other Pointsbet shareholders who share their views, and it is likely that the MIXI proposal will fail to secure the shareholder backing it needs.
Betr's CEO, Andrew Menz, categorically rejected Pointsbet's characterization of their cost synergy projections as being "materially overstated." Menz highlighted that the synergy projection is based on reliable data and that Betr is "highly confident" in its ability to deliver AUD 1.33 of value for Pointsbet shareholders.
A Quick Recap
Pointsbet has been a target of potential buyers for some time now. Initially, BlueBet proposed acquiring Pointsbet's business for AUD 340 million. Later, MIXI Australia stepped in with an AUD 353 million offer. Betr Entertainment, which acquired BlueBet, then increased its bid, submitting an AUD 360 million offer, asserting that AUD 40 million in synergies would deliver a total value of AUD 1.33 per share.
Pointsbet's leadership acknowledged Betr's proposal as a superior one but did not immediately dismiss the MIXI proposal. This led to a revision of MIXI's offer, which is now offering Pointsbet AUD 402 million, equivalent to a value of AUD 1.20 per share.
[4]: https://www.scmp.com/business/companies/article/3178276/mixi-offers-higher-261-million-bid- PointsBet-companies-third-takeover
- Betr Entertainment asserts that Pointsbet's decision to favor MIXI's takeover proposal undermines the significant financial benefits offered by their own proposal, which promises AUD 40 million in synergies, potentially providing AUD 1.33 per share to Pointsbet shareholders.
- In response to Pointsbet's characterization of Betr's cost synergy projections as being "materially overstated," Betr's CEO, Andrew Menz, maintains that the synergy projection is based on reliable data and expresses confidence in their ability to deliver the proposed AUD 40 million in synergies, potentially achieving a higher value for Pointsbet shareholders.
