Sportech enters exclusivity on Football Pools disposal

13th Sep 2016 14:22

(ShareCast News) - Sportech announced on Tuesday that it has entered into exclusivity with Burlywood Capital over the proposed sale of The Football Pools for a total cash consideration of £97.25m, on a debt free, cash free basis.The London-listed firm said Burlywood's management team proposes to apply for admission to trading on AIM of a new company incorporated to acquire The Football Pools.It would finance the acquisition of the business through a combination of equity from institutional investors and a new debt facility, for which a credit committee approved term sheet for up to £30m has been received."The proposed disposal is subject to, amongst other things, the necessary equity being raised, final agreement of the sale and debt documentation and, in view of its size, the approval of Sportech shareholders," Sportech's board said in a statement."The board of Sportech believes that the proposed disposal represents an attractive opportunity to realise the value of The Football Pools following the implementation of its modernisation programme and as it continues to transition its business model."The board was still acting cautiously, however, saying there can be no certainty that the disposal will complete, promising a further announcement in due course.