BlueBet has countered Japanese company Mixi with an offer to acquire fellow Australian gambling operator PointsBet.
Mixi first announced its offer of AU$352m to acquire all of the shares in PointsBet, which also operates in Canada but recently pulled out of the US market, through a scheme of arrangement.
The company requires 75 per cent of PointsBet shareholders to approve the move ahead of potential regulatory approvals as well.
Mixi said that alongside its Digital Entertainment segment offering mobile gaming and its Lifestyle segment, it has made sports betting and spectator sports a “focus area” and has been “striving to expand this sector.”
Indeed, Mixi already offers social sports betting through Tipstar, which offers online betting tickets for keirin in cycling and motorcycle racing.
The company said it is primarily focusing on Australia, “where the betting market is sizable and some states even have a public holiday for horseracing.”
“Given Australia’s established culture of enjoying betting with family and friends, we consider it a very attractive market for expanding our social betting service.”
However, Australian operator BlueBet, which recently merged with the betr brand in the country, has now made a counter-offer with an equity value of between $340m and $360m.
BlueBet chairman Matt Tripp and CEO Andrew Menz said in their letter to PointsBet counterparts Brett Paton and Sam Swanell, respectively: “Our proposal offers compelling strategic and financial benefits for PointsBet shareholders. The transaction offers betr immediate additional scale, access to important technology assets and key marketing contracts, all of which will accelerate our growth ambitions.
“The proposal offers PointsBet shareholders the certainty of cash consideration through a cash pool of $240m - $260m and scrip consideration of $100m - $120m, with the scrip component offering access to the synergies and significant accretive value.
“Furthermore, our proposal was submitted with limited conditionality, including receipt of necessary regulatory and third-party approvals (where required) and betr obtaining committed financing on terms satisfactory to betr.
“Based on our unsolicited interactions with common PointsBet and betr shareholders, we believe that over 20 per cent of PointsBet shareholders would prefer a transaction that includes a scrip component of consideration rather than a cash proposal.”
A scrip involves the issuing of free shares as opposed to a cash dividend.
PointsBet has made no comment on either of the proposals.
BlueBet said it “remains committed to exploring and progressing this proposal with PointsBet.”
Mixi said: “The results of the share acquisition will be announced promptly upon becoming available.
“We will also disclose the impact of making PointsBet a wholly owned subsidiary following the share acquisition on Mixi’s operating results and financial position as soon as it becomes clear.”
Read more: PointsBet plans igaming enhancements after Q1 net win rise
