New York hedge fund Standard General LLP has revealed that it has had a series of cash offers rejected by LSE-listed wagering and racing systems provider Sportech Plc.
The hedge fund said that its ‘latest cash offer’ of 28.5 pence per share, offering Sportech investors a 58% premium on the firm’s October LSE closing price of 18 pence per share, had been formally rejected by Sportech’s board.
Standard General has chosen to disclose its rejected bid, stating that Sportech investors should be notified that the firm’s governance had refused to review a deal valuing the company at £54m.
“The announcement of any formal offer for Sportech under the Takeover Code would be conditional on, amongst other things, satisfactory completion of diligence and the unanimous and unqualified recommendation by the Sportech board of directors,” Standard General detailed in its notice to Sportech shareholders.
Sportech has yet to disclose why it rejected Standard General’s ‘premium offer’.
The New York hedge fund stated that it held no intentions of acquiring Sportech through a buyout of its shareholding on the LSE.
“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,” it added.