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LADBROKES SELLS VERNONS POOLS TO SPORTECH
Investors seem to like the GBP 51 million deal
Sportech investors appeared to be in tune with the company's acquisition of rival Vernons Pools this week, driving up the share price by a solid 10 percent when the deal was disclosed.
Pools operator Sportech agreed to a total acquisition cost of GBP 51 million in the deal with Vernons parent Ladbrokes. The gaming firm said that it would pay GBP 45 million upfront, followed by two annual instalments of GBP 3 million.
Ian Penrose, Sportech Chief Executive told the Reuters news agency that the firm planned to revamp the image of the acquisition by re-branding it, bringing in new games and offering roll-over million pound jackpots to win back players.
STOP PRESS:
British football pools operator Sportech Plc has announced that it is raising GBP 41.4 million pounds via a placing and open offer to help pay for its GBP 51 million purchase of Vernons.
Sportech, which owns Littlewoods football pools, said in March it was in talks with Ladbrokes plc to buy Vernons Pools to add scale. The proposed deal has since received regulatory clearance and has gone through.
Sportech said it would sell 41.45 million new shares at 100 pence via a placing underwritten by Investec.
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