Strategic governance review sees Sportech put up for sale

Richard McGuire

Issuing a governance statement, London-listed betting systems provider Sportech Plc has today announced that it is seeking a corporate sale of its entire enterprise.

Its decision follows a comprehensive strategy review undertaken by Sportech governance with a view to maximising shareholder value.

Launching its bidding process, Sportech informs that it has appointed London investment firm Canaccord Genuity as lead financial advisor for its planned sale.

Canaccord Genuity will work alongside  Sportech’s Takeover Panel reviewing bids which will bring optimal value for the firm’s investors. Updating the media and stakeholders, 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.”

In its latest H1 interim statement, Sportech governance detailed that the company had undertaken a ‘transitional period’ for its business, having agreed to sell-off its Football Pools division for £83 million (March 2017) and having further been cleared of its £97 million tax dispute with UK HMRC.

Throughout 2016/2017 Sportech has pushed for the company to expand its services internationally, focusing growth within the US market for its racing systems division ‘Sportech Racing & Digital’ services.

Last September, Sportech’s leadership duo of CEO Ian Penrose and CFO Mickey Kalifa informed the board that their intended departures. Kalifa resigned with immediate effect, whilst Penrose is expected to maintain the position of Sportech leader until 31 December.

Moving forward with its sale, the Sportech board will publish a full strategic review with its corporate trading statement on 9 November.

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