Stride Gaming eyes sale as board conducts “strategic review”
Operator also considers acquisition and more “aggressive” UK strategy
Stride Gaming today announced it may look to sell the business in a bid to “maximise value for its shareholders”.
The operator this morning confirmed media reports about a potential sale over the weekend and in the wake of the news, shares in the business jumped 7.25% to more than 111p.
However, Stride said the board is “not currently considering” any specific offers for the company.
The potential sale comes as part of a review of the business’ strategic options, which could also include a more aggressive UK and international organic expansion strategy, and the potential expansion of the business through acquisition in both the UK and EU.
Investment firm Investec has been recruited to assist in the process.
The board reiterated their confidence in the business’s ability to be “highly cash generative” and confirmed its commitment to its revised dividend policy, which will see the business distribute at least 50% of adjusted net earnings in dividends to shareholders.
Further details concerning the review are due to be released with the company’s Q1 2019 financial results.
Alistair Ross, a senior investment manager at Pictet Asset Management, said a sale to another operator could make sense given the power of Stride’s proprietary technology.
At the group’s AGM last week, Stride confirmed its trading performance since the start of the financial year “has been broadly in line with the Board’s expectations despite the continued challenging trading conditions.”