Sportech has said it plans to return 35.5 million pounds to shareholders via a tender offer for up to 47.02% of its issued share capital.

The circular provides more information in relation to the Capital Reduction and Tender Offer and sets out the terms and conditions of the Tender Offer and the procedure for participating in the Tender Offer.

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.

In arriving at the level of cash available to be returned to shareholders, the board has taken account of the company’s available distributable reserves and the levels of funding in the Group to enable it to meet its working capital requirements. In the absence of the capital reduction, the amount available for return to Shareholders would be approximately £11.3 million due to the Companies Act requirement that a company can only make distributions to Shareholders out of profits available for that purpose.

Due to certain of the dates in the court timetable to implement the capital reduction being unknown at the date of publication of this announcement, the record date and the tender offer closing date cannot be ascertained at this stage. Sportech will announce the date of the record date and tender offer closing date to shareholders via a regulatory information service as soon as possible after those dates have been ascertained.