Mixi initially proposed acquiring all PointsBet shares through a scheme of arrangement, requiring approval from 75% of shareholders and regulatory clearance.
Australian gambling operator BlueBet has made a counter-offer to acquire PointsBet, challenging a AU$352 million bid from Japanese company Mixi.
Mixi initially proposed acquiring all PointsBet shares through a scheme of arrangement, requiring approval from 75% of shareholders and regulatory clearance. The company, which already operates the social sports betting platform Tipstar, sees Australia as a key market due to its strong betting culture and major horse racing events.
However, BlueBet, which recently merged with the betr brand, has now submitted an equity offer valued between AU$340 million and AU$360 million.
In a letter to PointsBet executives Brett Paton and Sam Swannell, BlueBet chairman Matt Tripp and CEO Andrew Menz highlighted the advantages of their proposal.
“Our proposal offers compelling strategic and financial benefits for PointsBet shareholders,” they wrote.
“The transaction offers betr immediate additional scale, access to important technology assets and key marketing contracts, all of which will accelerate our growth ambitions.”
BlueBet’s offer includes a cash pool of AU$240 million–AU$260 million and a scrip component of AU$100 million–AU$120 million, allowing shareholders to benefit from potential synergies and long-term value.
“Based on our unsolicited interactions with common PointsBet and betr shareholders, we believe that over 20 per cent of PointsBet shareholders would prefer a transaction that includes a scrip component of consideration rather than a cash proposal,” the letter added.
A scrip involves issuing free shares instead of a cash payout.
PointsBet has not yet commented on either bid, while BlueBet confirmed its commitment to progressing discussions.
Mixi, meanwhile, stated:
“The results of the share acquisition will be announced promptly upon becoming available. We will also disclose the impact of making PointsBet a wholly owned subsidiary following the share acquisition on Mixi’s operating results and financial position as soon as it becomes clear.”