Australian betting operator PointsBet is the target of competing takeover bids from MIXI Inc., and BlueBet. Reports suggest that the board favors MIXI’s offer.
The MIXI bid is valued at AU$353 million and offers AU$1.06 per share in cash. This may be positive news for crypto casino giant Stake, which increased its minority share position in PointsBet last year to more than 5 percent. Easygo Gaming, the parent company, owns over 16 million shares in the regulated bookmaker.
BlueBet’s bid is worth slightly more, AU$360 million. The deal, however, is a mix of cash (AU$240 – AU$260 million), scrip consideration (AU$100 – AU$120 million), and AU$40 million in projected synergies.
Funding Concerns and Synergy Doubts: PointsBet’s Take on BlueBet’s Offer
The PointsBet board said in the recent half-year financial earnings statement that the company may prefer a takeover by MIXI. The statement read: “The PointsBet Board unanimously recommended that PointsBet shareholders vote in favour of the Scheme, in the absence of a superior proposal and subject to an Independent Expert concluding (and continuing to conclude) that the Scheme is in the best interests of PointsBet shareholders.”
This was reinforced after a company statement, which determined that BlueBet’s proposal “could not reasonably be expected to lead to a superior proposal to that announced earlier today from MIXI.”
It outlined several factors contributing to the news. First, it claimed that BlueBet’s proposal was unfunded, subject to an explicit financing condition, and would require BlueBet to raise AU$100 million in debt and undertake a hefty capital raise (AU$160 million). The Board has stated that it believes this could “materially affect the value ultimately received by PointsBet shareholders.”
PointsBet also lamented BlueBet’s value creation proposition, suggesting it was heavily dependent on assumed synergies with no further detail or consideration of any “dis-synergies.” The Board also cast doubt over BlueBet’s credentials, given that it took the company 25 business days to conduct due diligence before a bid was made.
Major Investors Push Back Against MIXI Deal, Favor BlueBet
Major shareholders, such as Wilson Asset Management, are leaning towards BlueBet’s bid. Shaun Weick of the company told the Australian Financial Review: “The key attraction of the BlueBet proposal is the option to roll script into the merged entity, as we believe there is significant future upside.”
“Bowing out and accepting MIXI’s bid would leave a lot of upside on the table. We think the MIXI bid is truly undervaluing the business. We will vote against the MIXI deal,” he continued.
This was echoed by Pendal, who claimed that BlueBet’s offer was “superior.” In response, PointsBet CEO Sam Swanell claimed that MIXI’s offer was competitive. “The price appropriately reflects the value of PointsBet’s world-class technology assets and reputation for wagering excellence both in Australia and Canada,” he commented.
Following the announcement of the MIXI offer, shares in the Australian company jumped 32.5 percent.
The recent earnings call showed strong performance for the company. In the first half of FY2025, PointsBet posted a 5.8 percent revenue increase to AU$124.4 million. Sports wagering revenue grew 4.7 percent to AU$112.6 million, whereas iGaming revenue (exclusive to Canada) rose 18 percent to AU$11.8 million.
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