What was once rumour is now fact as Contagious Gaming (
TSX: V.CNS,
Forum) stepped forward to formally answer media speculation of a business combination proposal that had only been partially confirmed by the alleged target, Sportech (
GREY: SPOZF,
Forum), one of Europe’s largest operators of sports betting pools.
According to the
news release, the company confirmed it was in discussions with Sportech, which had generated revenues of £104 million (CDN $213 million) in 2014, to carry out a proposed combination deal with a cash and shares transaction.
As a result, the transaction, if successful, would create the largest pure play sports focused gaming company on the TSX, but as yet, this proposal is still very much in the discussion stage.
The release went on to note, “In accordance with Rule 2.6(a) of the Code, Contagious Gaming must, by no later than 5.00 p.m. on 11 September 2015, either announce a firm intention to make an offer for Sportech in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline will only be extended with the consent of Sportech and the Takeover Panel (the "Panel").
The company also stressed that there can be no certainty that the proposal will result in a formal offer by Contagious or that the potential offer would actually result in the proposed business combination.
Contagious Gaming was in the news recently
when Sportech made its initial confirmation of the business combination on last Friday which caused the TSX Venture Exchange to halt trading. Trading for Contagious
resumed earlier today.
There are 73.8m outstanding shares with a market cap of $18.1 million.
FULL DISCLOSURE: Contagious Gaming is a Stockhouse Publishing client.