Australian-based gambling operator PointsBet is the subject of multiple takeover bids.
PointsBet board members unanimously backed a bid from Mixi Australia, the subsidiary of Japanese digital sports and entertainment group Mixi Ltd. However, a competing offer from BlueBet has the support of PointsBet investors, according to Financial Review.
The bid from Mixi would award shareholders $1.06 per share, bringing PointsBet’s total value to about AU$353 million (roughly US$223.2 million). Based on PointsBet’s earning projections for FY2025, the bid represents an EBITDA multiplier between 25% and 32%. Another vote is expected to be held in late May to approve the deal, and if passed, implementation will commence in June.
PointsBet CEO Sam Swanell expressed positive thoughts on Mixi’s offer during his company’s half-year earnings call on Tuesday, saying the Japanese company’s proposal is “a compelling opportunity for PointsBet shareholders to realise immediate and certain cash value at a premium to the recent trading prices and at a high implied FY25 EBITDA model.”
Two competing bids in less than 24 Hours
Mixi’s offer is the second takeover bid that was made within less than 24 hours, shortly after its rival, Australian racing and sports betting operator BlueBet Holdings made its own offer to acquire PointsBet.
BlueBet’s offer comprised a cash pool of between AU$240 and AU$260 million, with a scrip component of consideration for an additional AU$100 to AU$120 million. The company also identified synergies that are expected to yield at least AU$40 million annually.
In a public letter addressed to Swannell and PointsBet chairman Brett Paton, their counterparts at BlueBet, advocated their company’s offer and the potential synergies it will bring to shareholders.
“Our proposal offers compelling strategic and financial benefits for PointsBet shareholders,” the letter stated. “The transaction offers betr (BlueBet’s brand) immediate additional scale, access to important technology assets, and key marketing contracts, all of which will accelerate our growth ambitions.”
PointsBet board members unanimously backed the bid.
“The key attraction of the BlueBet proposal is the option to roll scrip into the merged entity as we believe there is significant future upside,” said Wilson Asset Management’s Shaun Weick, a PointsBet investor. “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.”
As the scrip component refers to an additional AU$100 to AU$120 million worth of shares in betr as opposed to cash, some PointsBet shareholders are expected to prefer BlueBet’s offer, which will see shareholders receiving at least AU$1.14 per share.
Recent history of PointsBet takeovers
The fight for PointsBet’s takeover has been going on longer than some might think. PointsBet’s U.S. operations were acquired by Fanatics in 2024 after first being announced in 2023 that the acquisition would take place.
Since then, a report by stock market news company MarketScreener in November speculated that PointsBet would be subject to a takeover worth AU$300 million. PointsBet released a subsequent statement debunking these rumors.
