Sportech has announced a comprehensive review of the business and its capital structure, with all options to optimise value for the benefit of shareholders under consideration (the “Strategic Review”).

Having completed the initial stages of the Strategic Review, the Board of Sportech has decided to seek offers for the Company, and has appointed Canaccord Genuity Limited (“Canaccord Genuity”) as its financial adviser for this process.  The Company will continue to consider all options to maximise value for shareholders as part of its Strategic Review of the business and the capital structure.

The Takeover Panel has agreed that any discussions with third parties may be conducted within the context of a “formal sale process” (as referred to in the City Code on Takeovers and Mergers (the “Takeover Code”)) Accordingly, it has granted a dispensation from the requirements of Rules 2.4(a), 2.4(b) and 2.6(a) of the Takeover Code such that any interested party participating in the formal sale process will not be required to be publicly identified as a result of this announcement and will not be subject to the 28 day deadline referred to in Rule 2.6(a) of the Takeover Code for so long as it is participating in the formal sale process. Following this announcement, the Company is now considered to be in an “offer period” as defined in the Takeover Code, and the dealing disclosure requirements listed below will apply.

Parties with an interest in making a proposal should contact Canaccord Genuity through the contact details set out at the end of this announcement. Following the Strategic Review announcement on 18 September, several parties have contacted the Company to enquire regarding the Company’s plans, four of which have made preliminary approaches to acquire the Company. Although, the Company has acknowledged these enquiries it has not engaged in detailed discussions with those parties to date.   

It is currently expected that any party interested in participating in the formal sale process will, at the appropriate time, enter into a non-disclosure agreement and standstill arrangement with Sportech on terms satisfactory to the Board of Sportech and on the same terms, in all material respects, as other interested parties. The Company then intends to provide such interested parties with certain information on the business, following which interested parties shall be invited to submit their proposals to Canaccord Genuity.

The Company expects to provide a further update on the Strategic Review along with its trading update on 9 November 2017. Further announcements regarding timetable for the formal sale process will be made when appropriate.

There can be no certainty that an offer will be made, nor as to the terms on which any offer will be made.The Board of Sportech reserves the right to alter or terminate the process at any time and, in such cases, will make an announcement as appropriate. The Board of Sportech also reserves the right to reject any approach or terminate discussions with any interested party at any time.

Richard McGuire, non-executive Chairman of Sportech, commented: “We announced last month a comprehensive strategic review to assess options to enhance shareholder value. Further to this investigation, we have today launched this formal sales process.  Whilst we note there is no certainty that an offer, or suitable offer, will be forthcoming, our confidence in our businesses, in our growth opportunities and in our dedicated professional colleagues means that a potential sale is only one of the strategic options open to the Company.”