Sportech has confirmed the closure of deals to sell its global Tote business to BetMakers, Bump 50:50 to Canadian Banknote and a freehold property in New Haven, Connecticut, with projected proceeds from transactions to total £36.1m.
“I am pleased to announce these transactions are now complete and my gratitude goes to those dedicated professionals who are transferring to new owners of the operating businesses and I know our clients will appreciate the expertise, expanded product suite and commitment the team at BetMakers and Canadian Bank Note respectively will add,” explained Richard McGuire, Chief Executive Officer of Sportech.
“Sportech operations will be significantly smaller going forward and, as announced on Friday 4 June, we have recommended a listing move to the AIM market, which is a more suitable market for the Company’s current size and strategy and will offer greater flexibility with regard to corporate transactions.”
It is the board’s intention to return the majority of proceeds to the company’s shareholders – the timing and extent of such a return of proceeds will take into account the group’s investment opportunities and ongoing capital requirements. Sportech’s board has said it will consult with major shareholders as to the appropriate combination of the use of group net cash.