Sportech to seek shareholder approval for AIM delisting

Shares in betting operator Sportech fell sharply in London Monday morning as the company revealed plans to delist its shares from trading on London’s AIM.

Sportech said that the AIM listing imposes significant burdens on the company, particularly given the scale of Sportech group's business, which is now comprised of sports bars and betting venues in Connecticut and online pari-mutuel wagering in the United States under the Mywinners.com and 123bet.com brands.

The company moved to AIM from the main market of the London Stock Exchange in 2021 following the sale of its Raffle and Global Tote businesses. Sportech has also sold its Lottery business since then, with the sale of the businesses returning more than £45 million to shareholders.

Due to the reduced scale of the company, the board of directors have concluded that delisting from AIM is in the best interest of shareholders.

The delisting would have to be approved by at least 75 per cent of votes cast by shareholders at a General Meeting of the company, a date for which is yet to be announced.

Sportech said that its AIM listing costs amounted to £450,000 in 2022, accounting for almost half of the group’s pre-tax loss for the year. The company has also suffered from limited liquidity in recent years, leading to even small trades having a significant impact on the share price.

A circular on the proposed delisting and re-registration as a private company will be sent out to shareholders later this month. If the delisting is approved, the shares will be sold under a matched bargain facility.

"Despite delivering improving operational results announced today, the substantial financial cost associated with maintaining a public listing, given our current scale, and the increasing volatility in the market valuation is adversely impacting net returns and future prospects," said Richard McGuire, executive chairman of Sportech. "Regrettably, in light of these circumstances, we find it necessary to take the difficult but pragmatic step of proposing delisting from the AIM market today."

Shares in Sportech plc. (AIM:SPO) were trading 60.78 per cent lower at 38 pence per share in London Monday morning on the news and the company's H1 trading results.