Sportech gets a second extension on Contagious Gaming deal

The possible acquisition of Sportech plc by Canada’s Contagious Gaming group is taking longer than anticipated, and for the second time the negotiating parties have been given an extension on time limits for the deal by the London stock exchange.

In a statement Friday Sportech advised that a further extension to 5.00 p.m. on 6 November 2015 had been granted.

Negotiations with Contagious on a proposed takeover of Sportech started mid-August (see previous reports) with a deal conditional on reaching the right consideration; the satisfactory conclusion of due diligence procedures; Contagious success in raising the finance required; and Sportech shareholders approving the sale.

The deadline for Contagious Gaming to either announce a firm intention to make an offer for Sportech in accordance with Rule 2.7 of the exchange Code or announce that it does not intend to make an offer, expired on September 11, but an extension to October 9 was granted, leading to this week’s further extension.

The Sportech statement advises shareholders to take no action at present, as there can be no certainty that an acceptable formal offer for the company will ensue.

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