The online gaming platform operator said it is “likely” that its B2C business will be bought out of administration by Grace Media Limited. If the sale proceeds, Nektan says it will then seek to enter a B2B partnership with Grace Media to facilitate continued delivery of its B2C services to its white label partners, through which it will receive monthly royalties.
Nektan added that £5.6mln in remote gaming duty relating to its UK B2C business had been ringfenced following the appointment of administrators for its main trading subsidiary, Nektan (Gibraltar) Limited, of which the UK B2C business is a part.
The ringfencing protects the company from any claim by HMRC, however, the firm says it is “working with its advisors and the Administrators to develop a repayment plan acceptable to HMRC to allow the RGD liability to be repaid in full over time”.
The company said it believes the restructuring will re-position it to “target new emerging markets with a strengthened balance sheet and cash position”, adding that ongoing trading will not be affected during the process.
“The group restructuring reaffirms the directors’ decision to focus on emerging opportunities in international markets both directly and through our established reseller relationships. The completion of our recent fundraising has provided the company with the financial strength to complete this restructuring, and with the support afforded by all stakeholders, the Directors are confident of the future”, said Nektan’s interim chief executive Gary Shaw.
“The potential sale of the UK B2C business to a group of the calibre of Active Win Group demonstrates the significance of the white label operation which the Group has built over recent years. If the sale of the UK B2C business proceeds, and the Company secures a B2B partnership with the prospective buyer, we look forward to a bright future working in partnership with the prospective buyer as they take this business onto the next stage of its journey. The completion of the Group restructuring allows Nektan to focus on its expanding international B2C and B2B business”, he added.
Nektan’s shares are currently suspended on AIM at 2.8p.