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Read Full BioPointsBet announced that shareholders had approved MIXI’s takeover, but Betr is challenging the result as it claims its votes were excluded.
PointsBet shareholders voted on the proposed MIXI takeover on June 25 and announced that the majority of shareholders had approved the move.
Shareholders in the meeting voted overwhelmingly in favor of the Japanese entertainment company’s proposal, with 95.69% approving the takeover. The proxy vote was less one-sided, but the company still reported that 69.47% of votes were in favor.
Combining both the proxy and direct shareholder votes, a majority of 350.2 million approved the takeover, compared to 81.9 million against. This equates to 81% of shareholders approving MIXI’s takeover. The proposal required 75% of shareholders to vote in favor to be approved.
PointsBet Says Betr Revoked Its Votes
Betr, who holds 19.9% of shares (around 66 million shares) claims it voted by proxy, but PointsBet says its votes were revoked.
PointsBet claims that a Betr executive logged into the meeting virtually and revoked its votes. A statement said, “PointsBet understands, having confirmed with Computershare, that one of Betr’s senior company officers validly logged into the Scheme Meeting virtually and revoked Betr’s proxy on Betr’s behalf prior to the close of the poll.”
Betr challenged this assertion with its own statement, noting, “It appears that the chair of the meeting has impermissibly excluded Betr’s vote against the Scheme and provided no basis for doing so.”
“The company confirms it validly lodged its proxy vote against the scheme as recorded in the PointsBet announcement. Betr did not, at any time, revoke that proxy.”
Betr called for a recount of the votes and stated that, “If the chair of the meeting fails to do so and announces the results prior to the court hearing on 26 June, Betr will challenge the exclusion of its vote at the hearing.”
If Betr’s votes were counted, it would result in an approval margin of 70.2% from shareholders, below the 75% threshold.
Betr Bid Rejected In Favor Of MIXI Proposal
Betr had submitted its own bid to take control of the remaining shares of PointsBet, but the bid was rejected.
The bid was based on an all‑share proposal. It offered 3.81 Betr shares for each PointsBet share, valuing the company at roughly AU $1.22 per share. However, the bid would see the Pointsbet shares paid 57% in cash, and 43% in scrip.
PointsBet’s board rejected the bid in favor of MIXI’s cash proposal of AU$1.2 per share. The board cited the lower overall value of the bid, overstated synergies, and a lack of certainty over how Betr would execute the takeover as reasons for the rejection.
MIXI Monitoring The Situation
MIXI is a Japanese digital entertainment company that started as a social media site. The bid to take control of PointsBet aims to expand the company’s sports betting division. Currently, it is focused on horse racing and keirin cycling in Japan.
The betting industry in Japan is heavily restricted. This week the country’s ministry announced plans for further crackdowns on blocking gambling sites. MIXI is therefore looking at other markets for expansion.
The company welcomed the news that shareholders had approved its bid. However, it also said it was monitoring the situation with Betr.
A statement said, “MIXI welcomes the strong support from PointsBet shareholders which PointsBet has announced as endorsing MIXI’s $1.20 per share proposal.”
“MIXI also notes the announcement made by Betr in respect of the Scheme Resolution. MIXI is monitoring the situation closely and will provide an update when it has further information.”
PointsBet is primarily active in Australia and Canada, after selling its US operations to Fanatics last year.
A federal court will now decide whether to uphold the vote and approve MIXI’s takeover or order a recount. The decision is expected to come within the next week.
