Betting technology group Sportech has received and rejected multiple takeover offers from a US hedge fund valuing it at up to £54 million, it emerged today.
The company which runs the systems behind big brands’ sports and other online betting products, said the bids from Standard General, a fund best known for investing in the bankruptcy proceedings of US fashion enfant terrible American Apparel.
It has gambling experience, having invested previously in the Aliante Casino and Hotel group, which it also bought into during financial difficulties before it was sold in 2016.
Standard General said it had made several approaches with a view to making a cash offer for Sportech, “all of which have been rejected”.
The most recent approach was made on 28 October at 28.5 pence per share.
“This values the existing share capital of Sportech at approximately £53.8 million and represents a premium of 58.33% to the Sportech closing share price of 18 pence on 27 October 2020,” it said.
Sportech’s board had declined even to enter discussions, it said, leading it to go public with its offer so shareholders could consider it.
Sportech responded today with a statement confirming the offers, saying the latest bid “fundamentally undervalues Sportech’s businesses and prospects.”
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