Betting tech company Sportech has rejected multiple takeover offers from US hedge fund Standard General, it has announced.
The Bristol-based company, which previously ran the UK Football Pools and runs the tech for British bookmaker The Tote, said it had received two approaches about a possible cash offer.
Sportech said the valuation of £54million “fundamentally undervalued” its business and prospects, however.
The board said the offers from Standard General to buy the company were pitched at 25p and 28.5p per share - and it “unanimously rejected” the proposal.
The most recent approach was made on October 28.
"This values the existing share capital of Sportech at approximately £53.8million and represents a premium of 58.33 per cent to the Sportech closing share price of 18 pence on 27 October 2020,” it said.
Sportech said Standard General was now required to either announce a “firm intention to make an offer” or confirm that it "does not intend to make an offer” by December 3 - although it said the deadline could be extended.
Standard General said in a statement to Proactive Investors : “The Sportech board has rejected all proposals to date and declined to enter into discussions which might allow Standard General to proceed to a firm offer.
“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.”
