The governance of London listed betting and racing systems provider Sportech Plc has confirmed that it has agreed on terms to sell its Netherlands subsidiary Sportech Racing BV to private investor RBP Luxembourg (‘RBP’).
Sportech will carry-out the sale of Racing BV for a total cash consideration of €3.25 million on a ‘debt-free basis’.
Last June 2017, Racing BV, obtained a new five-year licence to maintain the exclusive rights for Dutch tote betting on horseracing. The licence is operated in nine betting shops, combined with 38 other betting-point outlets and through the website www.runnerz.nl.
Updating the market, Andrew Gaughan, CEO of Sportech, 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.”
The final transaction is subject to local regulatory consent and the transfer of various agreements and licences (on market terms) from certain Sportech group entities to Sportech Racing BV.
€2.8 million of the consideration will be payable at closing and up to a further €450,000 will be payable in January 2019, subject to certain agreed performance conditions being met. Deal stakeholders expect to close the transaction during H2 2018.
Source: SBC News
