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Contagious Gaming To Acquire Sportech
Saturday August 15,2015 : SPORTECH RESPONDS TO MEDIA SPECULATION ON CONTAGIOUS GAMING OFFER (Update)
Board will only recommend acceptance if the offer is at a premium to Sportech's current share price of 62.63p
The Board of Sportech plc has reacted to press speculation around the reported acquisition attempt on the company by Toronto, Canada-based Contagious Gaming
In a statement issued Friday, Sportech's directors confirmed receipt of an offer to buy Sportech from the Canadian listed gaming and software firm, but emphasised they would not recommend to shareholders any offer not at a premium to Sportech's current share price of 62.63p as at 13 August.
The statement reveals that Contagious Gaming's will include a majority of cash, with the balance in new Contagious shares, and in addition Sportech shareholders would also receive approximately half of the net proceeds in the event of a successful VAT repayment claim on the "Spot the Ball" game, with the balance going to the then enlarged Contagious Gaming group.
"The proposal is subject to due diligence, Contagious Gaming raising suitable financing and Contagious Gaming receiving a significant level of support for the proposal from Sportech shareholders," the statement concludes, promising a further announcement when this is appropriate.
In the meantime, Sportech shareholders are advised by the Board to take no action, as there can be no certainty that any formal offer for the company will be forthcoming, nor as to the terms of any such formal offer.
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