Tintra signs terms with Sterling Management to sell its lottery business

Tintra Plc announced Thursday that it has entered into heads of terms with Sterling Management Centre Ltd, an external lottery manager in the UK, regarding the scale of certain assets of Prize Provision Services Limited, the lottery administration business.

Subject to agreement of final contracts amongst other matters, these terms set out the structure of the sale of the Lottery Administration Business. The total consideration for the sale will be ranging from £0.25 million to £0.6 million (about $345,625 to $829,500), depending on a number of factors to be defined during final negotiation. 

As part of the heads of terms, the company will receive an initial cash consideration from the buyer, and a percentage of the Lottery Administration Business’ sales annually for three years from the date of completion. This percentage will be based on the gross proceeds from each lottery derived from the current players transferred at completion. 

In an official statement, Tintra expressed that “proposals from other prospective buyers were considered for the business, but the board believes that the long-standing good name and profile of the buyer provides for the highest ultimate sale price for the Lottery Administration Business as well as the best looking product offering for its existing clients and players”. 

“The board feels strongly that the deal that is anticipated under the Heads of Terms provides good value for shareholders for a number of reasons but not least when considered in line with results to year end 31 January 2021 during which the Lottery Administration Business made a loss before tax of $1381 on revenues of $954,298 and had net liabilities of $327,306.  A further announcement, including final terms, will be made on signing of the final agreement”, the statement concluded.