Proposed sale of The Football Pools

RNS Number : 6247J
Sportech PLC
13 September 2016
 

 

 13 September 2016

 

Sportech PLC

("Sportech" or the "Group")

 

Proposed sale of The Football Pools

 

The Board of Sportech announces that it has today entered into exclusivity with Burlywood Capital LLP ("Burlywood") regarding the proposed sale of The Football Pools for a total cash consideration of £97.25 million on a debt free/cash free basis (the "Proposed Disposal").

 

Burlywood's management team proposes to apply for admission to trading on AIM of a new company incorporated for the purposes of acquiring The Football Pools, and to finance the acquisition of the business through a combination of equity from institutional investors and a new debt facility, for which a credit committee approved term sheet for up to £30 million has been received. The Proposed Disposal is subject to, amongst other things, the necessary equity being raised, final agreement of the sale and debt documentation and, in view of its size, the approval of Sportech shareholders.

 

The Board of Sportech believes that the Proposed Disposal represents an attractive opportunity to realise the value of The Football Pools following the implementation of its modernisation programme and as it continues to transition its business model.

 

The proposed directors of the AIM quoted company which would acquire The Football Pools business are Ian Hogg (Chairman), Conleth Byrne (Chief Executive and current Managing Director of The Football Pools), Carl Lynn (Chief Financial Officer and current Finance Director of The Football Pools), Brian Mattingley (Non-Executive Director) and Liz Catchpole (Non-Executive Director).

 

Cenkos Securities plc is acting as Nominated Adviser and Broker to the proposed AIM quoted company.

 

There can be no certainty that the Proposed Disposal will complete and a further announcement will be made in due course.

 

This announcement contains inside information.

 

For further information, please contact:

 

Sportech PLC                                                                          020 7268 2400

Ian Penrose, Chief Executive

Mickey Kalifa, Chief Financial Officer

 

Investec Bank PLC                                                                   020 7597 5970

Chris Treneman (Corporate Finance)

James Rudd (Corporate Finance)

Patrick Robb (Corporate Broking)

Henry Reast (Corporate Broking) 

 

Brunswick Group LLP                                                              020 7404 5959

Mike Smith

Stuart Donnelly

sportech@brunswickgroup.com

 

 



 

Forward-looking statements

 

Certain statements in this announcement are, or may be deemed to be, "forward-looking statements". These statements are based on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements.

 

Forward-looking statements include statements typically containing words such as "plans", "expects", "is expected", "is subject to", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", "targets", "aims", "projects" or words or terms of similar substance or the negative of those terms, as well as variations of such words and phrases, or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Although Sportech PLC believes that the expectations reflected in such forward-looking statements are reasonable, neither Sportech PLC nor any of its directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward looking statements in this announcement will actually occur.

 

By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. These factors include: general business and economic conditions globally, industry trends, changes in consumer habits and preferences, competition, changes in government and other regulation (including licensing) and policy, including in relation to the environment, health and safety and taxation, labour relations and work stoppages, interest rates and currency fluctuations, changes in its business strategy, the outcome of any litigation, IT system and technology failures, political and economic uncertainty, and other factors, many of which are beyond Sportech PLC's control. If any one or more of these risks or uncertainties materialises, or if any one or more of the assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Such forward-looking statements should therefore be construed in the light of such factors.

 

Given these risks and uncertainties, investors should not place any undue reliance on these forward-looking statements, which speak only as of the date hereof. Other than in accordance with its legal or regulatory obligations (including under the Listing Rules and the Disclosure and Transparency Rules), Sportech PLC is not under any obligation and expressly disclaims any intention or obligation to update such statements, whether as a result of new information, future events or otherwise.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
DISMMGMLGZFGVZZ

Companies

Sportech (SPO)
UK 100

Latest directors dealings