14th Aug 2015 13:30
LONDON (Alliance News) - Sportech PLC shares rose on Friday after it said it has received a proposal from Contagious Gaming Inc that states it may make a takeover offer for the company.
Sportech shares were up 12% to 70.00 pence per share on Friday afternoon.
Sportech said it would only recommend an offer that was at a premium to its closing share price of 62.63 pence on Thursday and would comprise a majority in cash and the balance in new Contagious Gaming shares, it said.
In addition, Sportech said any VAT repayment from its "Spot The Ball" game would be split 50/50, with half being returned to Sportech shareholders and the other half going into the then enlarged group following the deal.
That VAT repayment claim is for GBP97 million, and the hearing about the claim will be heard in November, it said.
"A further announcement will be made when appropriate. In the meantime, Sportech shareholders are advised by the Board to take no action. There can be no certainty that any formal offer for the Company will be forthcoming, nor as to the terms of any such formal offer," said the company.
By Joshua Warner; [email protected]; @JoshAlliance
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