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(Alliance News) - Best of the Best PLC announced on Tuesday it has received a takeover offer from Globe Invest Ltd, valuing the firm at around GBP45.3 million.
Globe Invest is a single-family office and investment holding company of Teddy Sagi, and holds around a 30% stake in BOTB.
Sagi founded London-listed gambling software developer Playtech PLC and, most recently, his company Unikmind Holdings Ltd completed a takeover of digital privacy and security company Kape Technologies PLC.
BOTB is a London-based operator of weekly online raffle competitions. Globe Invest is seeking to acquire the remaining stake it does not already own in BOTB for 535 pence per share.
The price represents a 34% premium to the price paid by Globe Invest to acquire its initial 30% stake in BOTB back in September and an 8.9% premium to the average BOTB closing price of 491.5p over the past 12 months.
However, the offer represents a 3.6% discount to BOTB's closing price of 555p on Monday.
Shares in BOTB dropped 8.3% to 509.00p on Tuesday afternoon in London following the announcement.
The board of BOTB said it intends to unanimously recommend its shareholders accept the offer, which values the firm at GBP45.3 million.
"We are excited to continue to build on the foundations set by [Chief Executive] William Hindmarch and the team at BOTB, by focussing on sustainable long-term strategic competitive growth, by continuous investments in technology, customer/product analytics capabilities as well as product development, marketing and distribution capabilities, under a customer-centric model, both in the UK and in other new jurisdictions," said Teddy Sagi, owner of Globe Invest.
"We also intend to support BOTB in considering potential acquisitions. Through our affiliates, we expect to offer the business, operating and financial support and knowledge sharing, that would be required for BOTB's next period of growth trajectory."
Separately on Tuesday, BOTB announced its annual results, reporting a rise in profit but a dip in revenue.
In the year ended April 30, the company posted a pretax profit of GBP5.4 million, up from GBP5.1 million the year prior, as the firm benefitted from cost savings and "disciplined" investment in customer acquisition and marketing.
Revenue from continuing operations, meanwhile, dropped to GBP26.2 million from GBP34.7 million. BOTB said this was because the business had benefitted from favourable trading conditions during the pandemic.
It said that trading in the new financial year has started in line with management expectations.
"Whilst the period has not been without its challenges and we have delivered revenue that is a little lower than hoped, we are pleased to have produced profit in line with the expectations that we set out at the time of our interim financial results in January 2023," said Chief Executive William Hindmarch.
By Heather Rydings, Alliance News senior economics reporter
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