In a move that was highly anticipated, Nektan announced that they have completed the sale of their U.K. B2C business, selling it to Grace Media. The sale was for a total of £200,000 ($262,969) and is part of an overall restructuring plan by the company.
In the announcement, the online gaming platform operator explained that they had sold their B2C business to Grace Media Limited, which also included entering into a B2B partnership with Grace Media which will facilitate the delivery of B2B services to Nektan’s white label partners. This way, Nektan will still receive monthly royalties.
In a statement by Nektan’s interim chief executive officer Gary Shaw, he stated about the deal that it is “very reassuring to all stakeholders involved” having developed the B2B relationship.
In other news, Nektan announced that £5.6 million in remote gaming duty involving their U.K. B2C business had been ringfenced. This came following the appointment of new administrators for Nektan (Gibraltar) Limited, one of the company’s main trading subsidiaries. This move protects Nektan from any claim made by the HMRC, however, they added that they are working to develop a repayment plan that is acceptable to HRMC.
The move to sell their B2C platform had been highly anticipated. In December, they announced that they were close to reaching an agreement to sell the arm while also looking to launch 20 new sites by the end of the month. This came at a time where the restructuring of the company was at its most advanced stage to that point.
It also came just prior to Nektan being suspended from trading on the London stock exchange. This came after the company failed to publish their accounts prior to the end of 2019. They had already reported that they would not be able to publish their annual report as they were in the advanced stages of their restructuring program, but that meant little to the stock exchange.
Now that the sale is finalized, it could be a big boon for the Nektan. “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,” Nektan interim chief executive Gary Shaw said.
He added that, “The completion of the group restructuring allows Nektan to focus on its expanding international B2C and B2B business.”