On Friday of last week, Sportech, the sports betting technology company, announced the launch of a proposed tender offer. With the tender, the company plans to return up to $49.2 million to shareholders.
Sportech Launches Tender Offer
Sports betting technology company Sportech PLC announced the launch of a proposed tender offer on Friday of last week. The tender offer aims to return up to $49.2 million (£35.5 million) to shareholders. The company revealed that the maximum aggregate number of ordinary shares to be purchased under the offer is approximately 88.8 million, which represents 47.02% of Sportech’s issued ordinary share capital as of August 5, 2021.
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
Sportech revealed that the price per ordinary share, according to the tender, will be $0.55 (£0.40). Additionally, the company explained that the shareholders are “entitled to tender up to their Basic Entitlement, being 47.02% of the Ordinary Shares they hold as at the Record Date.”
Tender Conditional upon Shareholder Approval
The sports betting technology company said that the shareholders may also tender additional ordinary shares, but specified that “any excess tenders above the Basic Entitlement will only be satisfied, on a pro rata basis, to the extent that other Shareholders tender less than their aggregate Basic Entitlement.“
Upon releasing the tender offer, Sportech unveiled an expected timetable. The company pinned August 19 at 10 AM as the latest time and date for receipt of proxy appointments from shareholders. Considering that the tender offer is conditional and needs shareholder approval, the company has set a general meeting for August 23, 2021.
The Tender Comes Days after Sportech’s Transition to the AIM
Sportech’s tender offer announcement comes only days after its transition from LSE to AIM. Late last month, the company announced that it completed the transition from the London Stock Exchange (LSE) to the London AIM exchange. The strategic move was taken after the Board of Directors revealed that they strongly believe that the smaller AIM exchange will better serve a small-to-medium-sized company such as Sportech. Additionally, the company expects that the transition to AIM exchange will better serve the corporate needs and will create investment opportunities.