The Alcohol and Gaming Commission of Ontario (AGCO) issued a notice to suspend PointsBet’s license for five days after the operator didn’t identify and report suspicious...
PointsBet vote recount stops MIXI’s takeover approval
PointsBet‘s shareholder vote recount blocks MIXI‘s takeover bid, revealing a proxy error and restarting the battle with rival company Betr.
The original count was released after a June 25 meeting. It showed 95.69% approval for MIXI’s offer, which valued PointsBet at AU$402 million ($263 million). However, rival Betr demanded a vote recount, arguing its 19.9% stake had not been counted in the final vote.
An internal review by stock transfer firm Computershare revealed that Betr’s proxy vote has been excluded because of a system error. PointsBet revised the results, showing only 70.48% support for the scheme, below the point needed for approval, with 29.52% voting against.
Betr criticized PointsBet’s handling of the situation:
“Betr considers the approach taken by PointsBet, including subsequently making assertions to the ASX and to media as to the conduct of Betr in relation to the vote, was unprofessional and irresponsible.”
Betr has submitted multiple takeover proposals for PointsBet, including a latest all-share offer valuing each share at AU$1.22 based on a $0.32 Betr share price. PointsBet rejected that bid, calling it “materially lower” than MIXI’s all-cash offer, citing the low liquidity of Betr shares on the ASX.
Despite the voting reversal, MIXI brought up a revised proposal at the same AU$1.20 per-share price, offering a 44.6% premium to PointsBet’s closing price on February 25, the day before the original scheme was announced.
MIXI intends to file a new bidder’s statement in the coming weeks. The revised offer remains subject to a minimum 50.1% shareholder acceptance and regulatory clearance, including in Ontario, Canada, where PointsBet operates.
MIXI said:
“We look forward to progressing the takeover offer in a timely manner and paying PointsBet shareholders promptly in cash for their shares as and when the conditions to the offer are satisfied.”
PointsBet continues to unanimously recommend MIXI’s revised proposal. However, Betr urged PointsBet to delay dispatching MIXI’s new offer materials, warning that the company risks shutting down a fair contest.
Betr added:
“There is an ongoing contested auction for control of PointsBet. It is in the interests of all PointsBet shareholders that this auction be conducted openly and fairly to maximise the value received for their shares.”
Betr prepares its own takeover bid, with more details coming in the near future.
MIXI Australia raised its PointsBet takeover bid to A$1.25 per share in cash, declaring the offer unconditional. PointsBet's board unanimously recommends accepting it.
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