The CEO of PointsBet told investors on Tuesday, Feb. 25 that the Australian gaming company has agreed to be taken over by the Japanese firm MIXI, despite a rival bid from BlueBet.

Sam Swanell said on an earnings call that 100% of the shareholding of PointsBet Holdings Ltd. will be bought by the Australian arm of the consumer technology company. Based on the cash-per-share price indicated, the deal would amount to a total valuation of around $319 million CAD.

Shareholders will vote on the deal at a meeting which is expected to be held in late May 2025. It requires 75% approval to go ahead. The takeover will also be subject to an independent expert concluding that the deal is in shareholders’ collective best interest.

If ratified, it is expected to be completed in June.

Swanell said the value of the deal, which is not subject to any financing conditions, represents a significant premium of 27.7% to PointsBet’s closing price on Feb. 25.

“The PointsBet board believes this transaction represents a compelling opportunity for PointsBet shareholders to realize immediate and certain cash value,” said Swanell.

MIXI’s gaming operations include developing mobile games and operating horse racing and sports betting platforms. It also owns the FC Tokyo soccer team.

PointBet operates only in two markets, its home country of Australia and Canada’s regulated online gaming market of Ontario. In Australia, it is sports betting-only; in Ontario, it also offers online casino. It left the U.S. market last year after selling its American operations in that country to Fanatics.

Back in November, PointsBet swiftly denied Australian reports that it had held takeover talks with multiple potential suitors, including at least one company in Asia. Canadian Gaming Business reached out to PointsBet on Wednesday. The company did not offer comment beyond Swanell’s words.

Some shareholders prefer competing bid from BlueBet

Notably, Swanell said on the earnings call that the deal is unanimously recommended by the PointsBet board “in the absence of a superior proposal.”

On Wednesday, Feb. 26, the day after the PointsBet call, Australian gaming operator BlueBet published a statement in which it confirmed reports that it had also made an offer to acquire PointsBet. That proposal had a combined equity value of $307 million to $325 million CAD.

BlueBet chairman Matt Tripp and CEO Andrew Menz said the proposal presents a “highly attractive” offer for PointsBet shareholders that provides “compelling strategic and financial benefits for PointsBet shareholders.”

Sources told AFR that the initial BlueBet proposal was rejected because it was highly conditional and did not include funding certainty.

However, on Wednesday, the Australian Financial Review cited two PointsBet investors, Wilson Asset Management and Pendal, who suggested they may look to reject the MIXI offer in favour of the BlueBet bid. Both of those firms have shares in BlueBet.

PointsBet’s other shareholders include American gaming company PENN Interactive, as well as NBC Universal and the co-founders of Stake.com.

PointsBet publicly responds to BlueBet

In a statement published on Thursday, PointsBet responded to BlueBet’s executives by saying that it was already subject to exclusivity arrangements with MIXI when the BlueBet offer arrived.

PointsBet also stated that the highly conditional and unfunded nature of the BlueBet offer meant it “could not reasonably be expected” to lead to a proposal that was superior to MIXI’s.