Stride Gaming has announced that it has noted the recent press speculation and confirms it is currently reviewing all strategic options in order to maximise value for its shareholders.
The company also clarifies that it was fined once by the Gambling Commission of Great Britain in 2018, as announced on November 13, and not twice as inferred in the recent press speculation.
The board “remains confident in Stride’s ability to manage ongoing fiscal and regulatory market pressures and leverage its unique infrastructure to capitalise on significant growth opportunities in the dynamic UK market.
“Against this backdrop, the board is reviewing, among other things, a more aggressive UK and international organic expansion strategy and expanding the group’s operations through acquisition in the UK and/or international markets to take advantage of the disruption in the online gaming market resulting from fiscal and regulatory changes. “The board is also reviewing whether Stride should seek to participate in potential industry consolidation through a sale of the company. There can, however, be no certainty that an offer for the company will be made, nor as to the terms on which any offer will be made, should the board pursue this option. The board is not currently considering an offer proposal for the company. “The board believes the group will continue to be highly cash generative and remains committed to its revised dividend policy to distribute at least 50 per cent of adjusted net earnings in dividends. It is the board’s current expectation that it will report on the review ahead of announcing its interim results for the period ending February 28, 2019. The company has appointed Investec as its financial adviser to assist it with this review. As a consequence of this announcement, the company is now considered to be in an ‘offer period’ as defined in the code.”