Betmakers is not the only businesses eyeing Sportech as Standard General is the other one which launched a takeover bid earlier this month
In the latest news about technology 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 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 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 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 given the uncertainty surrounding the Standard General offer. Shares in BET are down 8.45 per cent and trading at 65 cents each.