Shareholders of PointsBet greenlight MIXI takeover, Betr calls for review of outcomes
Taking a Hard Line
It seems PointsBet is ready to dive headfirst into MIXI Australia's acquisition deal, despite Betr Entertainment's fiery opposition. Betr, which owns a substantial 19.9% stake in the Australian sportsbook, pulled a shocker by voting against the deal and later accused PointsBet of excluding its vote.
Missed Connections
PointsBet had quite the dalliance between MIXI and Betr looking for the perfect catch. Betr charged in, hot on the pursuit of PointsBet, proposing a deal that would've raked in a small fortune thanks to business synergies.
However, PointsBet's leaders, after careful consideration, deemed MIXI's latest proposal offered a value not reliant on synergies or conditions. Betr, on the other hand, argued that synergies would've boosted that value exponentially. They just couldn't see eye-to-eye.
Breakups Suck
When the dust settled, Betr was furious, claiming PointsBet didn't play fair and dismissed the tantalizing synergies on the table. Betr retaliated with a new all-scrip deal, but PointsBet dismissed it once more and encouraged its shareholders to side with MIXI.
The Big Showdown
On June 25, PointsBet's shareholders gathered to cast their votes on the MIXI deal. The showdown resulted in an overwhelming approval from the shareholders, with about 95.69% in favor (excluding Betr's vote).
But then, Betr alleged that its proxy vote against MIXI's AUD 1.20 per share takeover offer was improperly excluded. Betr demanded a recount and threatened legal action if necessary.
He Said, She Said
PointsBet disputes Betr's claims and insists it was only excluded because a senior Betr executive revoked their proxy vote during the virtual meeting, so no vote was cast on their behalf. Betr counters that their valid proxy was excluded without explanation and not revoked.
What's Next?
With a recount revealing a system error that altered the vote count, MIXI's initial takeover proposal failed. Undeterred, MIXI Australia is determined to pursue the takeover with a revised off-market all-cash offer – the battle for control rages on, with Betr prepared to take legal action if needed.
[1] InvestorPlace[2] Bloomberg[3] Reuters[4] Seeking Alpha[5] Yahoo Finance
- The ongoing dispute between PointsBet and Betr Entertainment, two significant players in the sportsbook market, could have far-reaching implications in the investing world, as the outcome of their legal battle might affect the profitability and growth of their respective businesses.
- In an interesting twist, the financial sector is watching closely as PointsBet, a company known for its sportsbook operations, now faces a legal challenge from Betr Entertainment – a move that could potentially reshape the investing landscape in the finance and business spheres.
