Intertain is to proceed with plans to relocate its corporate headquarters from Toronto, Canada, to London, following last month’s Brexit vote.
The online bingo company, which first mooted the move in March of this year, will also shift its stock listing to the London Stock Exchange (LSE) and trade on the Official List of the UK Listing Authority.
Under the relocation agreement, Intertain shareholders will receive shares of a new parent company on a one-for-one basis, with certain shareholders based in Canada having the choice to obtain shares on a tax-deferred basis.
Intertain said it does not currently intend to complete an offering of ordinary shares of the new company in connection with the initial implementation of the ‘UK Strategic Initiatives’. However, the company did state that it is actively exploring its debt financing options in connection with that process.
The London relocation is the latest move to have been established by an ongoing strategic review of the company, which last month led to Neil Goulden becoming new chairman of the board and Andrew McIver appointed as chief executive.
“We believe that a London listing will result in a fuller and more appropriate valuation of Intertain’s business, as these strategic initiatives are a key part of a range of initiatives intended to significantly realign Intertain’s share price with the company’s fundamental business results and prospects,” Goulden said.
“We also believe that they best position Intertain for long-term growth and success, which furthers our objective of enhancing shareholder value.”
McIver added: “Since my appointment, I have gained a deeper understanding of Intertain’s businesses, its strong set of core assets and its talented team of managers and operators.
“This has reinforced my view that Intertain is a company that continues to be undervalued by the market.
“I believe that the UK Strategic Initiatives provide us with a significant opportunity to realise that value by giving us a platform to further develop Intertain’s core assets, whether by organic growth, expansion into new geographic markets or otherwise, for the long-term benefit of Intertain and its shareholders and other stakeholders.”
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