Betr demands PointsBet recount on MIXI takeover vote after exclusion

Betr warned it may contest the shareholder outcome in court if PointsBet refuses to recount the tally.

Betr PointsBet MIXI vote

Betr Entertainment has demanded a recount of the shareholder vote on MIXI’s acquisition of PointsBet. The ballot took place on 25 June, but Betr, which made a rival takeover bid, claims its proxy vote was omitted.

Holding 19.9% voting power in PointsBet, Betr unsurprisingly voted against the scheme. In total, 81.9 million votes opposed the MIXI plan, compared with 350.2 million votes cast in favour of it.

Shareholders attending the meeting strongly endorsed the deal, with 95.69% backing it. This contrasted with the proxy count, where 69.47% supported MIXI’s bid.

PointsBet may face Betr dispute over vote

Betr, which submitted multiple competing bids against the PointsBet sale, criticised the outcome, saying the chair “wrongfully excluded” its proxy without any justification.

“The company confirms its proxy was properly filed against the scheme and recorded in PointsBet’s disclosure,” Betr stated. “Betr never revoked its proxy.”

As a result, Betr has demanded the chair recalculate the result and add its proxy. If this is not completed before the court hearing on 26 June, Betr warned it will contest the exclusion.

“If the chair fails to recount and declares the result before the hearing on 26 June, Betr will challenge the outcome in court,” it added.

Could Betr return with another takeover attempt?

Betr ended its release by confirming it will continue refining its own offer, the latest version of which PointsBet rejected this week in favour of MIXI. Betr’s proposal involved an all-share exchange of 3.81 Betr shares per PointsBet share, valuing each at AU$1.22 based on Betr’s $0.32 share price.

Betr argued its plan would bring “substantial value uplift” through the combined business. It also highlighted expected synergies of more than $40 million if a full acquisition were approved.

Despite this, PointsBet turned down the approach, calling it “materially lower” than MIXI’s AU$1.20 per share cash offer.

PointsBet had already signed a bid implementation deed with MIXI, and Australia’s Foreign Investment Review Board cleared the takeover. Thus, the shareholder vote marked the latest step forward for MIXI’s acquisition.

MIXI welcomes strong shareholder backing

MIXI responded to the outcome, expressing gratitude for investor support. It also acknowledged Betr’s remarks, saying it would watch developments carefully.

“MIXI welcomes the strong approval from PointsBet shareholders, which confirms backing for MIXI’s AU$1.20 cash offer,” MIXI stated.

“MIXI also notes Betr’s comments regarding the Scheme Resolution. MIXI is monitoring events and will update when new information emerges.”