The board of sports betting technology company Sportech said no dice to a pair of offers from New York-based hedge fund, Standard General. The company received two buy-out offers, one valued at 25 pence per share, and one at 28.5 pence per share.
The offers “fundamentally undervalue Sportech’s business and prospects,” the tech company said.
Standard General has until December 3 to put another offer on the table, although the time frame could be extended.
Standard General has chosen to disclose its rejected bids, stating that Sportech investors should be notified that the firm’s governance had refused to review a deal valuing the company at £54 million (US$71.3 million), according to SBCNews.
“Standard General still hopes to engage with the Sportech board with the goal of securing a recommended transaction that it believes is highly attractive and in the best interests of all Sportech shareholders.”
Unlike a lot of sports betting companies, Sportech mitigated some of the impacts of Covid-19 pandemic thus reducing the effect on net cash.
“The delivery of critical client projects and the securing of a significant number of new contracts in the midst of this global pandemic is testament to the resilience of the Sportech team and highlights the integrity of our people and the group’s digital strategy progression,” said Richard McGuire, CEO of Sportech.
