TEAMtalk succumbs to upped ukbetting bid

TEAMtalk's board had refused to countenance the 4.5p-a-share offer that was originally proposed by ukbetting, which did not have its calls returned. But the gaming operator's persistence has paid off, albeit at the expense of an improved offer.

Ukbetting will now offer 6p-a-share, or, for those shareholders that are happy to exchange equity, one new ukbetting share for every ten TEAMtalk shares. The total value of the deal is now 33.3% higher, but ukbetting believes the premium to its original terms is worth it.

Ukbetting vice chairman Peter Dubens said: "The increased offer demonstrates our belief that ukbetting's brands - namely Sportinglife and Sportal - together with TEAMtalk will make a good match, driving further consolidation in the digital sports content market."

When asked why the offer was raised Dubens said: "When we issued the original 4.5p-a-share offer we had based it only on public information, we weren't insiders. Having spoken with TEAMtalk over the past few days we now understand the business better and last night made the decision to improve the offer."

Leeds-based TEAMtalk has spent the last month restructuring and has now "substantially reduced operating costs" - its cash burn has recently been in the region of £1m-a-month, and the company has been trying to reduce this to preserve its £18m cash pile. It sold its US business and laid off around 70 staff in the UK as part of its strategic rethink.

Dubens said: "TEAMtalk has made some good progress in restructuring its business over the past month or so and has improved its position. Assuming shareholders accept our offer, the first thing we will do is consolidate our offices, as we are five minutes away from their premises in Leeds.

"Thereafter we will implement a throrough review of the business to determine what action needs to be taken. This review will be completed over the next few months."

Should shareholders accept the recommended offer, it is likely that more cuts will occur, as ukbetting aligns TEAMtalk's core sports content business with its existing brands. Dubens has previously indicated that ukbetting is only interested in businesses that will contribute positively to its balance sheet.

TEAMtalk shares have risen to 6p while ukbetting's stock has declined marginally to 59p. Ukbetting has performed very well since completing its IPO last July, listing at 25p-a-share. Fidelity International continues to add to its stake in the company, having this week purchased additional shares to increase its holding to 9.87%.



"www.teamtalk.com ":www.teamtalk.com

"www.ukbetting.com ":www.ukbetting.com