28th May 2015 11:21
LONDON (Alliance News) - Sportech PLC Thursday said it has sold its 50% stake in Sportech-NYX Gaming for GBP12 million to its joint venture partner NYX Social Gaming.
The online gambling and entertainment company said it will receive GBP5.2 million in cash, 2.2 million shares equating to GBP5.2 million and up to GBP1.6 million in deferred consideration, which it estimates will generate a pretax profit of GBP8.8 million.
Following the disposal, Sportech will own 2.2 million NYX shares, representing approximately 6.1% of its enlarged share capital, and added that it has agreed to a 12 month lock-up in relation to the consideration shares.
"We are pleased to have reached this agreement with NYX, generating a significant return for the group in a short space of time. The structure of the deal enables us to reinvest in our US growth activities in the sports gaming market, whilst retaining a material stake in the future of online casino gaming in North America. NYX is endeavouring to build a market leading position and we look forward to sharing in this opportunity with them," Sportech Chief Executive Ian Penrose said in a statement.
Shares in Sportech were trading up 2.6% at 68.00 pence Thursday afternoon.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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