In an announcement after the close on Tuesday, the online gaming platform operator said the B2C business was sold by administrators to Grace Media Limited, and the firm had now entered 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.
Gary Shaw, Nektan’s interim chief executive, said the deal is “very reassuring to all stakeholders involved” adding that the firm will be working in a B2B relationship with the buyer going forward.
In a prior announcement at around 4pm on Tuesday, Nektan said 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.
Nektan’s shares are currently suspended on AIM at 2.8p.
--Updates with details of B2C business sale--