PointsBet Holdings has rejected an unsolicited all-scrip takeover bid from Betr Entertainment as the company reaffirms that shareholders should accept the rival cash offer from MIXI Australia.
The PointsBet board emphasised that Betr’s proposal was “materially inferior” to MIXI’s, and is now urging shareholders to not take any action until the company issues its target’s statement.
Betr’s offer, which was announced last week and made directly to PointsBet shareholders as opposed to the company’s board, aims to acquire all PointsBet shares at a ratio of 3.81 Betr shares per one PointsBet share. Based on Betr’s last traded share price of $0.32, the company explained, this implies a headline valuation of around $1.22 per PointsBet share.
However, PointsBet disputed this figure and asserted that the offer is worth only $1.03 per share when based on Betr’s 20-day volume-weighted average price to 16 July 2025. The board also noted the offer provides no cash component, exposing PointsBet shareholders to the ‘volatility and liquidity risks’ associated with Betr shares.
However, MIXI Australia – which is part of MIXI Inc, a Japan-based tech and media group – has now made an all-cash offer of $1.20 per share, valuing PointsBet at approximately $402m.
The offer is fully open and has already received overwhelming support from the PointsBet board. MIXI currently has a 9.15% stake in the company, while Betr has a 19.6% share.
The company has recently begun expanding into international sports betting with its TIPSTAR platform in Japan and BetM in Australia’s Northern Territory. The acquisition is seen as part of MIXI’s broader push to evolve beyond gaming and entertainment.
The Board’s concerns
The PointsBet board has identified several risks associated with the Betr bid which included high conditionality, no price certainty, exposure to a Riskier Business Model, Higher Customer Churn and Gratuity Costs and Doubtful Synergies.
The firm also noted that Betr’s proposed share buyback is separate from the takeover offer and would need approval from Betr’s own shareholders, and PointsBet shareholders wouldn’t get a say in that decision.
Canadian business
Aside from the financial terms, the two bidders may have different views on what to do with PointsBet’s Canadian business.
Betr has already signed a non-binding deal to sell PointsBet Canada to Hard Rock Digital for $29.6m. It sees the Canadian arm as ‘unprofitable’ and plans to offload its licences, customer data and operations.
MIXI hasn’t said what it would do with the Canadian business, but its offer has received regulatory approval in Ontario. PointsBet is still active in the region and may expand into Alberta, which plans to launch a competitive betting market in 2026 – mirroring Ontario’s model.
What’s next
PointsBet has confirmed it is preparing a detailed target’s statement but until then, the board is sticking with its recommendation to accept the MIXI offer unless a better proposal comes along.
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