Nektan Sells B2C Subsidiary
Nektan, a global platform, and services provider for the online casino industry has announced the sale of its UK B2C business to Grace Media. The deal was for a total of £200,000 and is part of an overall restructuring plan being implemented by the company.
Nektan, a Gibraltar-based company, has announced the sale of its B2C business for a price of £200,000. The buyer is Grace Media Limited. ©lutz6078/Pixabay
In an announcement, the online gaming platform operator made the sale of the B2C business to Grace Media Limited public. It was explained that this sale also includes the development of a B2B partnership with Grace Media which will help to facilitate the delivery of B2B services to Nektan’s white label partners. This shrewd piece of business from Nektan ensures that it will still receive monthly royalties.
Grace Media Limited is a part of the digital marketing services provider Active Win Group.
The interim chief executive officer for Nektan, Gary Shaw, made a statement, about the deal. In this statement he said that it is “very reassuring to all stakeholders involved” when talking about the newly developed B2B relationship.
“The group restructuring reaffirms the directors’ decision to focus on emerging opportunities in international markets both directly and through our established reseller relationships,” explained Shaw.
“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 has stated that the restructuring of the company will reposition the provider in the future, allowing it to target new emerging markets with a strengthened balance sheet and cash position.
The provider highlighted that the sale would not have an impact on the operations of Nektan, or on any of its other subsidiaries, which will continue to trade “as normal”.
Nektan was founded in 2014 and describes itself as an international technology company AIM-listed on the London Stock Exchange. The headquarters of the company is located in Gibraltar, however, the provider also has offices located in the UK, the US, and India.
Recent Developments for Nektan
Nektan has also recently announced that £5.6 million in remote gaming duty involving their U.K B2C had been ringfenced. This announcement followed the appointment of new administrators for Nektan Limited in Gibraltar, which is one of the company’s main trading subsidiaries. The move will protect Nektan from any claims made by Her Majesties’ Revenue and Customs (HMRC).
The company has added, however, that it is working to develop a repayment plan that is acceptable to HMRC.
The recent move to sell their B2C platform has been highly anticipated. In December, the provider announced that it was close to reaching an agreement to sell the arm of the company. At the same time, it was also revealed that Nektan was looking to launch 20 new sites by the end of that month.
“The board continues to expect these launches to be transformational, with a number of these partners expected to deliver significant revenues to Nektan once fully established, which is considered typically to be 3 to 4 months after going live.” A spokesperson for the company said about the upcoming site launches.
These plans for the provider came into the public sphere just prior to the suspension of Nektan from the London stock exchange. This came after the company failed to publish their accounts before the end of 2019. The provider had already reported that it would not be able to publish its’ annual report as it was in the advanced stages of a restructuring program. This excuse meant little to the stock exchange, however.
The accounts are now expected to be published later in January.
Now that the sale has been finalized, it could bring new prospects to the company in 2020.
“For the administrators of NGL to secure the sale of the U.K. B2C business to a group of the caliber of Active Win Group, in order to see the continued, uninterrupted delivery of the white label operation the group has built over the years, is very reassuring to all stakeholders involved,” Gary Shaw said.
