24 Sep 2010 07:24
Sportech Plc ("The Group")
Regulatory Update on the Proposed Acquisition of Scientific Games Racing ("SGR")
Further to the interim results statement of 26 August 2010, Sportech today updates the market on the status of the regulatory approvals for the proposed acquisition of SGR from Scientific Games Corporation (Nasdaq: SGMS) ("SGC") following various hearings and meetings held by regulators this week.
Sportech is pleased to announce that key regulators in the United States with jurisdiction over the transaction have given required approvals for Sportech to acquire SGR from SGC. In addition, the regulatory application process in the Netherlands is complete and it is expected that the required license in the Netherlands will be granted upon completion of the proposed acquisition. As a result, the only outstanding regulatory approval required for the completion of the proposed acquisition is a ruling from the New Jersey Racing Commission and Sportech expects the Racing Commission to rule towards the end of September or early October 2010. Sportech expects final completion of the acquisition to take place in the near future and will update in due course. Sportech and SGC have agreed to extend the date by which completion of the acquisition must have occurred to 22 October 2010.
The summary regulatory status in each jurisdiction is as follows:
1. New Jersey Casino Control Commission
A transactional waiver for the acquisition of SGR by Sportech has been granted allowing Sportech to acquire SGR and allowing SGR to operate as normal under Sportech's ownership following completion of the proposed acquisition before the formal grant of a new license is made. Following completion, the ongoing approval process must be concluded and certain additional documentation provided in order for the Commission to reach its determination and complete the licensing process.
2. Gaming Policy Board of the Division of Special Revenue in Connecticut
The transfer of the right to own and operate SGR's Connecticut assets from SGC to Sportech has been approved and Sportech has been granted the required licence to own Autotote Enterprises, Inc., the entity operating such assets on the understanding that certain additional documentation will be provided following completion.
3. Maine State Harness Racing Commission
Sportech has been granted a provisional licence to operate SGR's business in Maine, which the Maine regulator has agreed extends through the end of 2011. It is expected that this provisional licence will be converted into a permanent licence in early 2011, when the remaining aspects of the review of information provided to the Maine regulator is completed.
4. Ministry of Justice in the Netherlands
Sportech has completed the application process with respect to the ownership of SGR's business in the Netherlands, and it is expected that the required licence will be granted on the date of completion.
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For further information, please contact:
Sportech PLC
Ian R Penrose, Chief Executive Tel: 020 7268 2400
Pelham Bell Pottinger
David Rydell / Emma Kent / Rosanne Perry Tel: 020 7861 3232