Satellite broadcaster Sky has actually offered a bulk stake in Sky Bet, valuing the gambling operation at ₤ 800m.
The Leeds-based operation, which includes sites such as Sky Vegas and Sky Bingo, is being bought by private equity group CVC Capital Partners., external
Sky will be paid ₤ 600m when the bet9ja's welcome offer is completed next year and will keep a 20% stake.
Betting and gaming was not considered as part of Sky's core service, a said.
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The sale would enable it to focus on the "significant growth opportunities" in pay-tv in the 5 European markets it ran in, Sky stated.
The business recently completed the acquisition of Sky Italia and a 90% stake in Sky Deutschland, bringing its client base to 20 million throughout Britain, Ireland, Germany, Austria and Italy.
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Jeremy Darroch, president of Sky, stated the sale realised "considerable worth" for shareholders.
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Shares in Sky rose 1.2% to 938p in London, valuing the company at just over ₤ 16bn. The stock has risen by almost 20% in the past 12 months.
'Successful possession'
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Analysts at Citi stated Sky could utilize a few of the profits to buy out the staying minority investors in Germany, including: "We believe a sale of Sky Bet is a practical strategic move."
Investec explained Sky Bet is a "non-core however extremely successful property" and said proceeds must help the business pay for debt, which was anticipated to be ₤ 6.3 bn for the 2015 fiscal year.
CVC, which has actually had an interest in the betting and video gaming sector with stakes in companies such as William Hill and IG Group, tried to purchase Betfair in 2015 in a ₤ 1bn deal. However, the two companies failed to agree on cost.
The personal equity group controls the Formula One motor racing organization.
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Sky Bet will stay in Leeds with all personnel moving to the new entity.
The business produced net earnings of ₤ 182m in the year to June 30 and pre-tax earnings of ₤ 50m.
Sky has actually struck a long-lasting brand name licence agreement with Sky Bet.
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Sky Sells Majority Stake In Sky Bet
darrinmacleay edited this page 2025-10-21 20:35:28 +08:00