Shares in Catalyst Media Group (AIM:CMX) sank over 10% on Friday after talks between a private equity firm and the company’s investee came to a close, an update revealed.
Sports Information Services (SIS), the provider of 24/7 betting content, previously entered talks with Oakvale Capital about a potential takeover.
However, SIS, in which Catalysts Media owns 20%, said it believes its “shareholder value can best be maximised for the time being by continuing to implement the existing strategic development plan”.
Catalyst confirmed that operations at SIS were going well in the financial year so far, with the betting group signing several deals with multiple gambling operators.
During the first six months of Catalyst’s financial year, it posted revenues of nearly £126mln and operating profits of £1.9mln.
Catalyst shares opened at 135p on Friday morning.