Nektan have been very busy in the new year, with them officially announcing that they have sold their UK B2C business for a total of $262,400 (£200,000). This is part of Nektan trying to restructure the business, a lengthy process that has been pushed forward with this deal going through.
There have been other areas and circumstances where Nektan have made some key decisions, in order to restructure themselves. The founder of Nektan, who also acts as the Executive Director, Gary Shaw, told Gambling Insider that the CEO Lucy Buckley has parted ways with Nektan, and this was related to the restructuring of the company. Gary Shaw himself is not acting as the Interim CEO.
The reason for Nektan wanting to restructure in the first place is because they want to start to move away from the UK market and want to be heading more towards Asia, as they see this as a huge market with a lot of potential for them.
The UK B2C business that Nektan owned, was sold to Grace Media, who are part of the Active Win Group. Active Win are a great company to sell to in their eyes, as they wanted to continue to facilitate its B2C services to white-label partners.
Nektan have stated that this sale will not impact on any of the subsidiaries, which will continue trading as usual. The sale and restructuring will allow Nektan to start targeting new markets that are emerging with a stronger balance sheet, hence the move towards the Asia markets.
Gary Shaw has said that the deal is “very reassuring to all stakeholders involved”, even though that Nektan themselves did not appoint any administrators to aid the sale. Recently, Nektan’s shares were suspended from trading on the London Stock Exchange, after the firm missed to deadline to publish its annual report and accounts for the year for 30 June 2019.
This was also because of the length restructuring process which has been put in place by Nektan and Gary.
The sale of the business happened after the appointment of Mark Phillips and Julia Swan of PCR London, who were appointed as administrators just prior to the sale.
The B2C business appeared to be making a loss when the accounting year was concluded in June 2018. The reports show that the business had a turnover of £19.4 Million but made a loss.
The Chief of Active Win, Warren Jacobs has had his say on the deal, “ The opportunity to acquire the UK B2C business allows Active Win Group to expand further into the UK online casino market, furthering our growth in this market from being a white label operator ourselves, to working with the full complement of business partners established by Nektan in recent years.”