PointsBet accepts $353m MIXI takeover bid despite rival BlueBet’s higher offer
Australian bookmaker PointsBet Holdings (ASX: PBH) finds itself at the centre of a bidding war between Japanese sports and entertainment giant MIXI and local betting firm BlueBet (ASX: BBT).
PointsBet agreed this morning to a $353 million takeover by MIXI via a binding scheme implementation deed, under which PointsBet shareholders would receive a cash consideration of $1.06 per share.
The PointsBet board unanimously endorsed the scheme and its directors confirmed their intention to vote their shares in favour.
Attractive premium
The MIXI offer price represents a premium of 27.7% to PointsBet’s closing price on 25 February and a 23.9% premium to the one-month volume-weighted average price.
It also represents an implied enterprise value and EBITDA multiple of between 25.2 and 32.1, based on PointsBet’s FY2025 guidance range.
The company has scheduled a meeting to vote on the scheme for May and advised PointsBet shareholders they did not need to take any action at this time.
Best interests
Chair Brett Paton said the MIXI takeover would be in the best interests of PointsBet shareholders.
“This transaction represents a compelling opportunity for our shareholders to realise certain cash value at a significant premium to recent trading prices and at an implied enterprise value which compares very favourably with historical sector trading multiples and multiples associated with other transactions in the sector,” he said.
“We believe the price appropriately reflects the value of PointsBet’s world-class technology assets and reputation for wagering excellence in Australia and Canada.”
BlueBet offer
Shortly after the board’s endorsement of the MIXI deal, PointsBet received a formal takeover offer from key competitor BlueBet valuing it at more than $360m.
The new offer replaced a non-binding and indicative proposal made on 18 February and came with a cash pool of up to $260m, a scrip consideration of up to $120m and up to $40m in annual synergies to PointsBet shareholders.
BlueBet merged with Betr in April and recently bought Queensland operator TopSport as part of a bid to grow its market share.
BlueBet’s initial offer to PointsBet was ultimately rejected in favour of MIXI’s lower takeover bid.
About MIXI
Based in Tokyo, MIXI’s principal business activities include the development and operation of mobile games, publicly managed sports betting services and the management of professional sports teams in Japan.
It also operates the social networking site Mixi 2, which offers communication services including payments, advertising and networking.
MIXI has more than 1,600 employees worldwide and generated approximately JPY 147 billion in annual net sales in the 2024 Japanese financial year.
MIXI’s wholly owned Australian subsidiary is licensed in the Northern Territory as a sports bookmaker and provides wagering services to Australian consumers under the “betM” brand.
Potential deals
Founded in Melbourne in 2017, PointsBet has engaged with multiple local and international parties in recent months regarding potential deals.
The company was in talks with sports gambling powerhouse and key competitor DraftKings in June 2023, regarding an indicative takeover offer for its US businesses at a headline purchase price of US$195m.
That offer arrived weeks after bookie giant Fanatics Betting and Gaming proposed to buy the same businesses for US$150m cash in an effort to boost its presence in sports gambling.
Fanatics eventually increased its offer to US$225m and officially purchased the businesses in October 2023.