Sportech Declines Standard General Sales Bid

Sportech, the Board of sports betting technology company, has announced that it has declined an bid from New York based investment fund Standard General.

The company Standard General offered two regular buy-out deals to Sportech, one priced at 25p per share and the other at 28.5p per share, and the total amount of the transaction was estimated at £54 million. Both were turned down by the retailer.

Sportech's board said in a statement:

"The board unanimously rejected Standard General's latest proposal, which it believes fundamentally undervalues Sportech's businesses and prospects," Sportech shares rose by 31% to 27.10p at 08:27 GMT.

Standard General is yet to make a further bid until 3 December 2020. If required, the deadline can be extended.

"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," said Standard General.

Earlier this year, Sportech reported that it had been able to alleviate some of the COVID-19 pandemic's impacts, meaning that sport cancelations were less harmful to net cash from the provider than anticipated.

At the time, Sportech's CEO Richard McGuire explained how the company had been able to overcome the underlying challenges of the crisis. He said:

“The delivery of critical client projects and the securing of a significant number of new contracts in the midst of this global pandemic is testament to the resilience of the Sportech team and highlights the integrity of our people and the group’s digital strategy progression.”