Strategic review completed
In compliance with stock exchange regulations and the Takeover Code, gambling technology developer and provider Sportech plc has advised that it intends to seek offers for the company, and has appointed Canaccord Genuity Limited as its financial adviser for the process.
The decision follows a comprehensive review of the business and its capital structure, with all options to optimise value for the benefit of shareholders under consideration, the company said in a statement Thursday.
The Takeover Panel has agreed that any discussions with third parties may be conducted within the context of a “formal sale process” (as referred to in the City Code on Takeovers and Mergers.
Accordingly, it has granted a dispensation from the requirements of the Takeover Code such that any interested party participating in the formal sale process will not be required to be publicly identified as a result of the announcement, and will not be subject to the 28 day deadline referred to in Rule 2.6(a) of the Takeover Code for so long as it is participating in the formal sale process.
Following this announcement, Sportech is now considered to be in an “offer period” as defined in the Takeover Code, and the dealing disclosure requirements will apply.
Richard McGuire, non-executive chairman of Sportech, commented: “We announced last month a comprehensive strategic review to assess options to enhance shareholder value. Further to this investigation, we have today launched this formal sales process.
“Whilst we note there is no certainty that an offer, or suitable offer, will be forthcoming, our confidence in our businesses, in our growth opportunities and in our dedicated professional colleagues means that a potential sale is only one of the strategic options open to the company.”
Sportech plc is a global pari-mutuel betting technology company focusing on regulated markets worldwide. It has more than 27,000 betting terminals deployed to 400 clients across 37 countries including those in the USA, where it operates under 26 licenses across 37 States and processes approximately $11 billion of bets annually.
The company has invested over $50 million in developing its technology services to clients and the successful expansion of its US gaming venues in the last five years, resulting in its proprietary Quantum product being the most widely deployed pari-mutuel betting system globally.