New York hedge fund Standard General LLP has reported that LSE-listed wagering and racing systems provider Sportech Plc has declined a series of cash offers.
The hedge fund announced that the board of Sportech had officially declined its ‘new cash bid’ of 28.5 pence per share, giving Sportech investors a 58 percent premium on the company’s October LSE closing price of 18 pence per share.
Standard General decided to report its rejected offer, saying that investors in Sportech should be told that the firm had declined to review an agreement valuing the company at $71 million.
Standard General detailed in its notice to Sportech shareholders that: “The announcement of any formal offer for Sportech under the Takeover Code would be conditional on, amongst other things, satisfactory completion of diligence and the unanimous and unqualified recommendation by the Sportech board of directors.”
Sportech has yet to announce why it refused the ‘premium offer’ from Standard General.
The New York hedge fund announced that it did not plan to acquire Sportech through the acquisition of its LSE shareholding.
“Standard General still hopes to engage with the Sportech board with the goal of securing a recommended transaction that it believes is highly attractive and in the best interests of all Sportech shareholders,” the firm added.