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Contagious Gaming launches Sportech takeover bid

UK f

Sportech2015
ootball pools operator and technology supplier Sportech has confirmed it has received a takeover bid from Canadian provider Contagious Gaming.

Sportech released a statement in "response to recent press speculation” verifying the receipt of Contagious Gaming’s takeover proposal.

The firm said: “Any recommended offer from Contagious Gaming, if made, would be at a premium to Sportech’s current share price of 62.63p as at 13 August 2015 and would comprise a majority in cash and the balance in new Contagious Gaming shares.”

Any deal between Sportech and Contagious Gaming would be subject to due diligence, Contagious Gaming raising suitable financing and the takeover proposal receiving a “significant level of support from Sportech shareholders”.

Shares in the company rose more than 10% on Friday 14 August after the statement was released.

Sportech added in its statement: “Sportech shareholders are advised by the board to take no action.

“There can be no certainty that any formal offer for the company can be forthcoming, nor as to the terms of any such formal offer.”

Sportech shareholders would also be in line to receive “approximately half of the net proceeds” in the event of a successful £97m VAT repayment claim on its “Spot the Ball” game, with the balance going to the then enlarged Contagious Gaming Group.

The operator’s previous legal victory was overturned at the Upper Tribunal of the Tax and Chancery Chamber, with an appeal scheduled to be heard in November 2015.

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