PointsBet acquisition by MIXI gets Australian govt approval
Australia-based online sports betting platform, Pointsbet Holdings Limited, has announced that it has received written approval from the Australian Commonwealth Government for its proposed acquisition by Japanese tech conglomerate MIXI. This regulatory nod from the Foreign Investment Review Board (FIRB) comes under the scrutiny of the Foreign Acquisition and Takeovers Act 1975.
Ontario approval pending
The approval, issued under Australia’s stringent foreign ownership laws, signals that the government does not view the acquisition as a threat to national interests. The all-cash proposal values the Australian-based betting operator at AUD$402 million (approximately US$260 million). While one of the significant hurdles has been cleared for the buyout to move forward, the deal is still subject to Ontario approval.
Details of the deal
Rumors first swirled in November 2024, suggesting PointsBet was in talks with a foreign entity. However, PointsBet dispelled rumours suggesting that it is in talks of being acquired by an unidentified company for a deal valued at about A$300 million. Fast-forward to February 2025, the company confirmed it was indeed considering a proposal from MIXI. The deal was initially worth A$353 million. About a week ago, the proposal was sweetened by MIXI, which currently values the Australian-based betting operator at AUD$402 million. This latest development firmly positions MIXI as the frontrunner in a competitive bidding war for PointsBet’s non-U.S. operations, which span Australia, Canada, and Ireland.
MIXI’s enhanced offer of $1.20 per share means a 44.6 percent premium over PointsBet’s closing price of $0.83 on February 25, when MIXI first entered the fray with an initial bid of $1.06 per share. Crucially, MIXI’s revised proposal comes with no financing conditions, offering a high degree of certainty to PointsBet shareholders. The PointsBet board has unanimously recommended the improved MIXI proposal, contingent on no superior offer emerging. To allow shareholders ample time to consider this new development, a scheme meeting originally slated for June 12 has been postponed to June 25.
Battle for PointsBet
This move by MIXI follows a period of intense competition, notably from Betr Entertainment (formerly BlueBet), which is PointsBet’s largest shareholder. Betr had previously submitted a counterproposal valued at AUD$360 million, which the PointsBet board had, at one point, deemed “superior” to MIXI’s initial offer. Betr’s offer included a mix of cash and scrip (shares in Betr), with a potential implied value of up to $1.33 per share. However, the certainty of MIXI’s all-cash offer appears to have swayed the board’s recommendation. Despite MIXI’s strengthened bid, Betr has indicated it is “likely to vote no” with its substantial shareholdings against the current MIXI proposal.
In recent news, PointsBet landed in hot water after being fined A$500,800 for breaching spam and self-exclusion laws, marking a significant moment in the country’s ongoing efforts to regulate online gambling. The fine followed an investigation by the (ACMA), which found PointsBet guilty of sending hundreds of illegal marketing messages, including to individuals who had taken active steps to exclude themselves from betting.
