Sportech Plc has revealed its intentions to launch a tender offer, which has proposed an ‘up to £35.5 million payout’ to existing company shareholders.

The tender offer has been sanctioned by Sportech’s senior leadership, with the wagering systems provider aiming to recapture 47% of its issued share capital – reported to be 88.8 million ordinary shares.

Sportech has offered its existing shareholders a 40 pence per ordinary share deal price – representing a 28% premium on the firm’s current 31.5 pence trading value as of Thursday 5 August.

The transaction follows Sportech’s completion of its listing on the London AIM exchange this July. The listing, Sportech explained, was a decision undertaken to provide better investment opportunities for Sportech as the company reduced its operating size following the sale of multiple assets.    

The stock repurchase will be paid for by the combined £36 million net cash proceeds generated by Sportech’s sale of its Global Tote and Bump 50:50 units.

“Given the change in size of the Group, the Group now has funds surplus to its current operational requirements and the Board believes that now is an appropriate time to return through the Tender Offer up to approximately £35.5 million of cash to its shareholders,” the statement read.

The board of Sportech has continued to place a focus on reducing the firm’s operating size, in which the group has entered exclusive discussions to sell its terrestrial lottery supply contract for $14-$15 million.  

Sportech’s tender offer is conditional upon shareholder approval at a general meeting to be held on Aug. 23 and confirmation of a capital reduction by the court, the company said.