Sportech To Launch £35m Tender Buyout Offer

Sportech Plc has announced its intention to conduct a tender offer, with existing shareholders potentially receiving a dividend of up to £35.5 million.

Sportech’s senior management has approved the tender offer, which aims to reclaim 47 percent of the company’s issued share capital, which is estimated to be 88.8 million ordinary shares.

Sportech has offered existing shareholders a transaction price of 40 pence per ordinary share, which represents a 28 percent premium over the company’s current market value of 31.5 pence as of Thursday 5 August.

Sportech completed their initial public offering (IPO) on the London AIM exchange in July. Sportech noted that the listing was made to create greater investment prospects for the company as it reduced its operating size as a result of the sale of several assets.

Sportech’s sale of its Global Tote and Bump 50:50 units earned £36 million in net cash, which will be used to fund the stock repurchase.

Surplus funds

The statement read: “Given the change in size of the Group, the Group now has funds surplus to its current operational requirements and the Board believes that now is an appropriate time to return through the Tender Offer up to approximately £35.5 million of cash to its shareholders.

Sportech’s board of directors has remained committed to lowering the company’s operating size, and the company has entered exclusive talks to sell its terrestrial lottery supply contract for $14-$15 million.

Sportech’s tender offer is contingent on shareholder acceptance at a general meeting on August 23 and judicial confirmation of a capital decrease, according to the business.

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About Joe Kizlauskas

Joe is a seasoned iGaming copywriter and speaker who has been in the business since 2015. He's written more words on all elements of iGaming than he likes to remember, and he's contributed material to a number of well-known brands. Joe may be seen playing 5 a side, at the gym or playing games on his Playstation when he is not writing.