23rd Apr 2018 10:45
LONDON (Alliance News) - Sportech PLC said Monday that it has agreed to sell its Netherlands business, Sportech Racing BV, to RBP Luxembourg for EUR3.3 million on a debt-free and cash-free basis.
The transaction is expected to close in the second half of 2018. EUR2.8 million will be payable at closing, with the remaining EUR450,000 due in January 2019.
Sportech Racing obtained a new five-year licence in June 2017 for the exclusive rights to carry out tote betting on horseracing in the Netherlands. The licence is operated in nine betting shops, 38 other outlets with point-of-sale terminals and online through its website.
CEO Andrew Gaughan said: "The proposed disposal represents an attractive opportunity to realise value following the successful licence extension and restructuring of the business by management as we increase focus on US growth opportunities. Sportech will continue to provide RBP, under a long term contract, its ongoing tote services and also has a strong working relationship with them focused on developing and selling their French racing pools into our vast footprint of global customers."
Shares in Sportech were down 2.1% Monday morning to 63.64 pence each.
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