Sportech to Depart from the AIM and Re-Register as a Private Company

Sportech considers departing from the London Alternative Investment Market (AIM) and re-registering as a private limited company.

The delisting proposal follows a thorough evaluation of the company’s business by the board of directors, which explored potential benefits and drawbacks. The review acknowledged “significant burdens”, both financial and non-financial, associated with Sportech’s status as a public company.

The board of directors concluded that going private would be in the company and its stakeholders’ best interest. Sportech published an Appendix where it explores the multiple reasons for its delisting plans. Sportech also promised to send a circular to shareholders, outlining the reasons for the proposed listing cancellation and re-registration.

The company also plans to adopt new articles of association which will be communicated to shareholders via a Circular in the second half of the month. At the time of their publishing, Sportech will also notify shareholders about the next general meeting.  

Sportech Believes Delisting to Be the Right Course of Action

Sportech explained that the cancellation of its listing would require the approval of at least 75% of the shareholders cast at the upcoming general meeting. The company also noted that the re-registration as a private company or the associated adoption of new articles will require a separate vote that will also need the approval of at least 75% of shareholders. `

If shareholders greenlight the delisting and subsequent re-registration as a private company, Sportech plans to implement a matched bargain facility with a third-party matched bargain facility provider. Thanks to this, shareholders will be able to easily buy and sell ordinary shares in the wake of Sportech’s departure from the AIM.

Sportech concluded that more details will be outlined in the upcoming circular.

For reference, Sportech’s share price sits at 63.90p as of the time of this writing. This is a significant decline from last week when Sportech’s shares exceeded 90p. Despite the temporary decline, the company’s leadership is certain that a cancellation of its AIM registration would be the best and most pragmatic course of action.

In other news, Sportech just published its half-year report. The company was able to deliver solid operational performance and stable growth of revenue, with gross profit growth of 7.2% at £7.4 million ($9.27 million). Adjusted EBITDA, meanwhile reached £900,000 ($1.1 million).