This morning the Toronto TSX Venture listed Contagious Gaming confirmed that it had entered talks with Sportech regarding a potential merger for the formation of “combined, technology-focused, sports wagering company”.
Contagious Gaming stated that it had made its acquisition intentions under the City Code on Takeovers and Mergers. Under the takeover code the company must either make a firm intention to make an offer by September 11, or walk away.
Sportech governance have responded by confirming that it has received an opening proposal, however it would only recommend a bid which would represent a premium on its closing share price of 62.53 pence. Furthermore any bid would have to be compromised with a majority of cash for investors.
This morning Contagious Gaming submitted the following statement
“There can be no certainty that the submission of the proposal will lead to Contagious Gaming making a formal offer or, in turn, the completion of the business combination,”
“The merged company will combine a technology driven company focused on developing online/ mobile solutions for the sports betting and lottery markets with the UK’s largest private sports lottery”.
Contagious outlined its rationale for the offer, and said the deal would create the “largest pure play sports focused gaming company on the Toronto Stock Exchange” and a “leader in sports betting”.