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Evoke Starts Strategic Review, Weighing Sale or Breakup After UK Tax Hikes

The company points to sharply higher online gambling duties that it says could add up to £135 million a year.

Overview

  • The board is considering options that include a full group sale, divesting assets or business units, or other restructuring moves.
  • Morgan Stanley and Rothschild have been hired as joint financial advisers, and the company cautioned there is no certainty any transaction will occur.
  • UK Budget measures lift remote gaming duty to 40% from April next year and set a 25% online sports-betting duty from 2027, with horse racing exempt.
  • Evoke estimates the changes could add up to £135m to its annual tax bill and has withdrawn medium-term targets, warning of potential job losses and a shift to the black market.
  • The Gibraltar-incorporated group reminded investors the UK City Code on Takeovers and Mergers does not apply, so any offer would not be regulated by the UK Panel.