Capital Reduction and distribution to shareholders

RNS Number : 6471W

Sportech PLC

16 November 2017

 

For immediate release

16 November 2017

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

This announcement contains inside information

Sportech PLC

('Sportech' or the 'Company')

Confirmation of Capital Reduction and distribution to shareholders

Sportech PLC announces the completion of its capital reduction plan as approved by Shareholders on 24 May 2017 and declares a distribution of 29.0 pence per share in cash amounting to, in aggregate, £53,828,131 (the 'Distribution')*.

The Distribution follows the successful sale of The Football Pools business, completed in June 2017 and the subsequent approval of the Company's application to reduce its capital by approximately £55.7 million by the Edinburgh, Court of Session this week.

The Distribution will be made to those shareholders on the register on Friday 24 November 2017 (the record date) and paid on Monday 18 December 2017.  The shares will be marked ex-dividend on Thursday 23 November 2017.

Richard McGuire, Non-Executive Chairman of Sportech, said: "We previously announced that the Company would be making a significant distribution to its shareholders and I am pleased to formally announce that we will be distributing almost £54 million to shareholders in December. This follows the £21 million returned in March this year via a share buyback, taking total shareholder distributions to £75 million in 2017, further illustrating the turnaround in the Company's financial position over the last twelve months.  The Board are also continuing with the Formal Sale Process as outlined earlier this month and we will update shareholders further at the appropriate time."

* Based on 185,614,244 ordinary shares of 20 pence each in the capital of the Company which are entitled to receive the Distribution.

- Ends -

Contacts:

Sportech PLC	Tel: [phone]
Richard McGuire, Non-Executive Chairman Richard Cooper, Non-Executive Director
Canaccord Genuity Limited (Financial adviser to Sportech)
Chris Robinson / Miles Cox	Tel: [phone]
Mike Kogan	Tel: [phone]
Peel Hunt LLP	Tel: [phone]
(Corporate broker to Sportech) Dan Webster / George Sellar
Buchanan	Tel: [phone]
(Financial PR adviser to Sportech) Henry Harrison-Topham / Mark Court / Jamie Hooper	[e-mail]

Notes to Editors:

Background

Following the sale of the Football Pools, the Company did not have sufficient reserves available for distribution. Accordingly, it was proposed that the Company would create distributable reserves through a Court-approved reduction of capital ("Reduction of Capital") to reduce its share capital through the cancellation of £0.30 of the capital paid up on each ordinary share of £0.50 each in the capital of the Company. Subsequently the Court approved the Company's application that £0.30 of the capital paid up on each ordinary share be cancelled (thereby reducing the nominal value of each such share to £0.20), the distributable reserves therefore increased by, and the share capital of the Company reduced by, approximately £55.7 million.

About Sportech

Sportech PLC, listed on the London Stock Exchange, provides and operates technology solutions for some of the world's best-known gaming companies, sports teams, horse and greyhound racetracks, as well as owning and operating its own gaming venues in Connecticut, USA and the Netherlands under exclusive licences.

The Group is a leading player in the global pari-mutuel betting technology sector focusing on highly regulated markets worldwide. It has more than 27,000 betting terminals deployed to over 400 clients across 37 countries including those in the USA, where it operates under 35 licences across 37 States and processes approximately US$12 billion of bets annually. It has invested over US$60 million in developing its technology services to clients and the successful expansion of its leading US gaming Venues in the last five years, resulting in its proprietary Quantum™ product being the most widely deployed pari-mutuel betting system globally.

Inside information and responsibility

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement this inside information is now considered to be in the public domain.  The person responsible for this announcement on behalf of Sportech is Richard McGuire, Non-Executive Chairman.

 

END

 

 

MSCOKPDQDBDBDDD