PointsBet Shareholders Approve MIXI Deal, Betr Demands Recount

PointsBet seems to be ready to move forward with MIXI Australia’s acquisition proposal, despite Betr Entertainment’s decision to vote against the deal. The latter company, which owns a 19.9% stake in the Australian sportsbook, later alleged that PointsBet excluded its vote and demanded a recount.

MIXI and Betr Sought to Acquire PointsBet

PointsBet had been considering between its two suitors for a while as MIXI and Betr clashed over the Australian sportsbook. Betr, which seemed hellbent on acquiring PointsBet, had proposed a deal that could have potentially generated millions of dollars due to inherent synergies between the businesses.

However, PointsBet determined that MIXI’s latest proposal offered value that was not dependent on synergies and other conditions. While Betr asserted that synergies would result in a greater value, PointsBet’s leadership suggested that its forecasts were too optimistic. As a result, its leadership decided to go with MIXI’s deal.

Betr was unhappy with this development, insisting that PointsBet had not acted in good faith and that it had dismissed the potential synergies. Betr returned with a new all-scrip deal, which PointsBet also rejected and encouraged its shareholders to approve the MIXI deal.

PointsBet Claims Betr Revoked Its Proxy Vote

On June 25, PointsBet’s shareholders voted on the MIXI Australia deal, opting to approve the transaction. Under the agreement, the Australian arm of the Japanese tech company would acquire PointsBet for AUD 402 million ($261 million), equivalent to AUD 1.20 ($0.77) per share.

Betr accused PointsBet of excluding its vote, saying that “the chair of the meeting has impermissibly excluded Betr’s vote against the scheme and provided no basis for doing so.” As a result, Betr demanded a recount and threatened to take the matter to court, if needed.

PointsBet rejected Betr’s claims and said that Betr had revoked its proxy vote prior to the closing of the vote. It added that Betr did not cast a vote during the meeting. Betr, on the other hand, insisted that it had validly lodged its proxy vote and had never revoked it.

Betr said that it expects PointsBet to correct its mistake.