Sportech PLC Termination of discussions (0799J)

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RNS Number : 0799J

Sportech PLC

17 December 2020

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17 December 2020

Sportech PLC

("Sportech" or the "Company")

Termination of discussions and reiteration of recommendation

Termination of discussions with Standard General L.P.

Following today's announcement by Standard General L.P. ("Standard General") that it does not intend to make an offer for Sportech, the Board of Sportech confirms that it has terminated talks with Standard General.

Since 3 December 2020, the Company has shared certain information with Standard General as part of a focused due diligence exercise in order for Standard General to be in a position to announce a firm intention to make an offer in accordance with Rule 2.7 of the Takeover Code. In parallel, the Company has maintained an open dialogue with its major shareholders.

Having considered the full terms and conditions of Standard General's proposal, and taking into account the views of the Company's major shareholders, the Board has concluded that the proposal did not adequately value the businesses and prospects of Sportech, in the light of both the execution risk attached to Standard General's proposal and the Company's other options to create shareholder value, including the proposed disposal of its Global Tote business to BetMakers Technology Group Ltd (the "Disposal").

Recommended disposal of the Global Tote business

Further to the Company's announcement on 1 December 2020 regarding the Disposal, the Board continues to believe the terms of the Disposal to be in the best interests of the Company and its shareholders.

Accordingly, the Board reiterates its recommendation that shareholders vote in favour of the resolution to approve the Disposal at the general meeting (the "Resolution") to be held at 8 Lockwood Court, Market Place, Pocklington, York YO42 2QW at 10.00 a.m. on 24 December 2020 (the "General Meeting").

In line with recent UK legislation in relation to holding company meetings during the COVID-19 pandemic, the General Meeting will be convened with the minimum quorum of shareholders (which will be facilitated by the Sportech group's management) in order to conduct the business of the General Meeting. The Company strongly urges shareholders to vote by proxy on the Resolution as early as possible, and the Board recommends that shareholders appoint the chairman of the General Meeting as their proxy and no-one else.

Unless proxy appointments (whether made online, via a CREST Proxy Instruction or by a hard copy form of proxy) are received by no later than 10.00 a.m. on 22 December 2020 (or, if the General Meeting is adjourned, not later than 48 hours before the time fixed for the holding of the adjourned meeting), they will be invalid.

Further details concerning the submission of a proxy appointment are set out in paragraph 10 of Part I (Letter from the Chairman of Sportech) of the circular sent to shareholders dated 7 December 2020 which included notice of the General Meeting.

For further information please contact:

Sportech plc

Giles Vardey, Non-executive Chairman Tel: [phone]

Richard McGuire, Chief Executive Officer

Tom Hearne, Chief Financial Officer

Peel Hunt (Financial and Rule 3 Adviser) Tel: [phone]

George Sellar / Michael Nicholson

Buchanan Tel: [phone]

Henry Harrison-Topham / Jamie Hooper

[e-mail]

Important notice

Peel Hunt LLP ("Peel Hunt"), which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting exclusively for Sportech and for no one else in connection with the matters referred to in this announcement and will not be responsible to anyone other than Sportech for providing the protections afforded to clients of Peel Hunt or for providing advice in relation to the contents of, or matters referred to in, this announcement.

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December 17, 2020 12:29 ET (17:29 GMT)