Join our daily newsletter At The Bell to receive exclusive market insights
- Betmakers Technology (BET) could have a bidding war on its hands as it eyes the purchase of some major assets from U.K. online betting business Sportech
- The company announced earlier this week it was offering $56.2 million to buy Sportech’s racing and digital assets in the U.S., the U.K., and Europe
- However, New York-based investment firm Standard General has lobbed a bid for control of the full Sportech business
- Standard General’s initial offer of 28.5 pence (around A$0.52) per Sportech share was shut down, but a second offer of 32.5 pence (roughly A$0.59) is garnering more interest from Sportech
- Nevertheless, Betmakers assured investors its deal with Sportech is binding and the Standard General takeover offer doesn’t change this
- Still, shares in Betmakers have taken a hit this morning, down 8.45 per cent and worth 65 cents each
Betmakers Technology (BET) could have a bidding war on its hands as it eyes the purchase of some major assets from U.K. online betting business Sportech.
The company announced earlier this week the $56.2 million buy of Sportech’s tote and digital business. Specifically, Betmakers is after Sportech’s racing and digital assets in the U.S., the U.K., and Europe.
The company has tapped investors for $60 million through a share placement and share purchase plan to help fund the buy.
However, Betmakers is not the only businesses with its eyes on Sportech; earlier this month, New York-based investment firm Standard General lobbed a takeover bid for full control of Sportech.
Standard General was offering 28.5 pence (around A$0.52) per share for Sportech. Sportech rejected the offer and declined any requests to step into discussions with Standard General for a potential buyout.
Then, on December 1 — the same day Betmakers announced its proposed purchase — Standard General lobbed another bid for Sportech, this time offering 32.5 pence (roughly A$0.59) for control of the company.
This time around, Sportech showed some more interest, and Standard General has now been granted access to certain Sportech information to take on due diligence work.
Standard General has until December 17 to officially announce its intention to make an offer or to let the deal slide.
While Betmakers is just after the tote and digital assets from Sportech, Standard General is chasing control of the whole business. As such, it’s not certain yet what the Standard General offer means for Betmakers and its purchase.
Nevertheless, Betmakers assured investors this morning that is still has a binding deal with Sportech with respect to the tote and digital business sale.
“The board of Sportech has agreed to recommend the acquisition to its shareholders and has confirmed that it will shortly release a circular convening the meeting to approve the acquisition of the tote and digital business,” Betmakers said in an announcement to shareholders.
The company also pointed out that there is no certainty Standard General will make a formal offer, and the current bid remains subject to due diligence.
Still, Betmakers shares have taken a slight hit this morning given the uncertainty surrounding the Standard General offer. Shares in BET are down 8.45 per cent at 11:27 am AEDT and trading at 65 cents each.
