UK-based Tintra Plc has announced it has entered into a head of terms agreement to sell its Lottery Administration Business (LAB), Prize Provision Services Ltd, to Sterling Management.
Subject to final agreement amongst other matters, the head of terms agreement sets out the structure of the sale of the Lottery Administration Business.
Contingent to numerous factors undisclosed by Tintra, the Total Consideration for the sale could fluctuate from £0.25m to £0.6m. Some of the factors to which the fee is contingent are yet to be agreed upon and will form part of the remaining negotiations.
Sterling Management operates on its website www.sterlinglotteries.co.uk and is an external lottery management firm registered with the Gambling Commission. It has over 30 years of experience in the lottery industry and other charitable gaming and prize-led fundraising activities on behalf of charities, good causes and organisations within the UK.
Forming part of the head of terms agreement, the company will receive an undisclosed amount as an initial cash consideration. Furthermore, the company will also receive a percentage of the LAB’s revenue for the next three years from the date of the completion of the sale.
Moreover, determining the exact percentage will be based on the gross proceeds from each lottery derived from the current players transferred at Completion.
Updating its shareholders, Tintra did not indicate a completion date but did suggest that the sale will bring good value for the shareholders and that a further statement would be issued in due course.