The Board of sports betting technology company Sportech has announced it has rejected an offer from New York-based investment firm Standard General.
The company received two buy-out offers from Standard General, one valued at 25p per share, and one at 28.5p per share. Both have been rejected by the supplier.
In a statement, Sportech’s Board said it believed the offer “fundamentally undervalues Sportech’s business and prospects.”
Moving forward, Standard General has until 3 December 2020 to make another offer. This deadline can be extended if needed.
Earlier this year, Sportech announced it had been able to mitigate some effects of the COVID-19 pandemic, meaning sport cancellations had been less detrimental to the supplier’s net cash than expected.
At the time, Richard McGuire, CEO of Sportech, explained how the supplier had been able to combat the difficulties inherent in the crisis. He said: “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.”