• AGCO has given the green light to MIXI to proceed with PointsBet’s acquisition
• Previously, a shareholder vote mistakenly showed the bid had been accepted
• This was not true, as a computing error had occurred, excluding rival Betr’s vote

The Alcohol and Gaming Commission of Ontario (AGCO) has cleared one of the last remaining hurdles ahead of MIXI’s acquisition of PointsBet. The regulator issued a statement of acknowledgment of the deal and said that it saw no need to intervene or stop the transaction from proceeding in its current form.

MIXI continues with an off-market bid for PointsBet

Thanks to the approval from Ontario, the AU$402 off-market takeover bid could continue as intended, although there are still potholes that could throw a spanner in the works. For one, despite the regulatory approval in Canada and from the Northern Territory Racing and Wagering Commission in Australia, MIXI still needs to secure the approval of shareholders.

A minimum of 50.1% is required for the deal to be finalized on the terms that MIXI envisages. The voting process has already been marred by PointsBet involuntary commitment of a mistake, excluding a 19.9% vote against the acquisition from rival Betr Entertainment, which is also challenging the deal.

Initially, the company said that the vote had passed and shareholders had indeed approved the takeover bid, but it later transpired that a system malfunction had not counted Betr’s vote in the first place. This means that nothing is settled as a new note will have to take place.

A mistake that is grossly unprofessional and irresponsible

The issue was traced to the registry provider – Computershare – which apologized for the serious mistake that was nevertheless caught in time. However, Betr was not happy with the outcome and said that it was PointsBet’s current leadership that was to blame, accusing the company of being irresponsible and unprofessional under its current stewardship.

Because of the failed shareholder vote and a new one looming, MIXI has pushed ahead with its off-market offer and has urged shareholders at PointsBet to accept its proposal, arguing that Betr’s rival bid simply offered a reduced value for shareholders.

This opinion was shared by PointsBet even before the first shareholder vote, with the company leadership arguing that MIXI did indeed offer a superior value.

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