PointsBet (PBH AU): Either Betr Pulls A Rabbit Out Of The Hat, Or Walks

• Mixi (2121 JP)'s A$1.20/share cash Offer is now open, with a 50.1% acceptance condition. PointsBet Holdings (PBH AU) is supportive. Mixi currently holds 25.15%. ~16% of shares out have tendered.

• Betr Entertainment (BBT AU) (self-alleged superior) scrip Offer, with no minimum acceptance condition, is still out there. betr holds 19.6%. No shareholder has accepted terms.

• PBH has now tapped the Takeover Panel seeking orders betr clarify its convoluted Offer.

PointsBet is an illiquid stock. If that's not your bag, look away now.

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MIXI's initial Offer, by way of a Scheme, was on the 26th Feb. betr's approach was rejected.

I've followed with six subsequent reports as betr attempted to dislodge MIXI.

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What's New?

• Mixi now holds 25.15%, including 0.67% in an acceptance facility.

  • It's not clear if this includes 8.02% held by PBH shareholders, as announced on the 22nd July, who are expected to tender within ten business days from the Offer opening on the 22nd July.

• The Takeovers Panel. PBH raises the following issues:

  • 1. the value of the consideration offered under the betr offer, is “presented in a highly misleading and unbalanced way";

  • 2. the synergies which betr relies upon in valuing its offer consideration, which it submits “contain material errors and are presented in a misleading, incomplete and unbalanced manner”;

  • 3. by promoting a selective buy-back of betr shares following the closure of the takeover offer at $1.22/share, betr is seeking “in effect to offer PointsBet shareholders a cash alternative to the all-scrip offer” which is being offered outside the betr offer and represents “a clear inducement to encourage acceptance”;

  • 4. betr has breached the policy behind the minimum bid price rule in section 621(3) by inflating Betr’s share price through announcing details of the selective buy-back;

  • 5. betr’s Executive Chairman, Matthew Tripp, has failed to disclose the true extent of his and his associates’ voting power in betr.