Sportech has announced that the period of exclusivity for negotiations of its terrestrial lottery supply contract has been extended for a second time until December 1 with due diligence with a prospective buyer ongoing.
The firm first revealed its intention to sell its lottery supply contract back in August whilst revealing that a period of exclusivity had been agreed with a potential buyer.
Last month, it was confirmed that the exclusivity period agreement has been extended by nearly four weeks until October 29.
However, as that date passed without a further update or agreement, Sportech renegotiated a second extension on the period of exclusivity.
The lottery and betting technology firm’s current contracts up for sale last until 2025 and generated an EBITDA of $3.93m in FY19, the last full year unaffected by COVID-19.
The fee discussed in August suggested the lottery supply contracts could be sold for $14m-$15m, although the extension of the period suggests the price could be altered.
A Sportech statement read: “Sportech announces that further to the Company’s announcement on 5 October 2021 regarding Sportech’s exclusive discussions to potentially sell its terrestrial lottery supply contract, the period of exclusivity afforded to the potential buyer has been extended to 1 December 2021 in order to bring the negotiations and any resulting transaction to a conclusion.
“There can be no certainty that this transaction will proceed and a further announcement will be made if and when appropriate.”