Sportech Rejects Two Takeover Bids From American Hedge Funds
The firm behind The Tote received two cash offers from the New York-based fund at 25p and 28.5p per share
Bristol-based betting tech company, Sportech, has confirmed that it has rejected two takeover bids from US hedge fund, Standard General.
The firm behind The Tote received two cash offers from the New York-based fund at 25p and 28.5p per share. The latest offer, received on 28th October, valued the firm at £53.8m. Sportech believe this offer “fundamentally undervalues” its business and future prospects with the board voting unanimously in favour of rejecting the offer.
Whilst that most recent bid represents a 58.33 per cent premium on the current 18p share price of Sportech, it is some way short of its 2018 price of 83p per share.
In a statement released on Thursday evening, Standard General confirmed:
“The Sportech board has rejected all proposals to date and declined to enter into discussions which might allow Standard General to proceed to a firm offer.”
“Standard General still hopes to engage with the Sportech board with the goal of securing a recommended transaction that it believes is highly attractive and in the best interests of all Sportech shareholders.”
Standard General have now been set a deadline of December 3rd to announce either a “firm intention to make an offer” or confirm that it "does not intend to make an offer”. However, Sportech have confirmed that this December 3rd deadline can be extended.
A spokesperson for Standard General, said:
“Because of the movement in Sportech’s stock price, under the disclosure requirements of the takeover code, we were required to make a public announcement. Going forward, we’re looking forward to engaging with the company and its stockholders.”
