[ENG] Q&A

Sky Sells Majority Stake In Sky Bet

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Writer : Susanna
Date : 25-10-18 20:54
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Satellite broadcaster Sky has sold a majority stake in Sky Bet, valuing the betting operation at ₤ 800m.

The Leeds-based operation, which includes websites such as Sky Vegas and Sky Bingo, is being purchased by personal equity group CVC Capital Partners., external

Sky will be paid ₤ 600m when the bet9ja's welcome offer is finished next year and will keep a 20% stake.

Betting and gaming was not considered as part of Sky's core business, a representative stated.

The sale would enable it to concentrate on the "substantial development opportunities" in pay tv in the five European markets it ran in, Sky stated.

The business just recently finished the acquisition of and a 90% stake in Sky Deutschland, bringing its client base to 20 million across Britain, Ireland, Germany, Austria and Italy.

Jeremy Darroch, president of Sky, said the sale realised "considerable worth" for shareholders.

Shares in Sky rose 1.2% to 938p in London, valuing the company at simply over ₤ 16bn. The stock has actually increased by nearly 20% in the previous 12 months.

'Successful property'

Analysts at Citi stated Sky could use a few of the profits to purchase out the staying minority investors in Germany, including: "We think a sale of Sky Bet is a sensible tactical relocation."

Investec described Sky Bet is a "non-core however extremely effective possession" and said earnings need to help the company pay for debt, which was expected to be ₤ 6.3 bn for the 2015 financial year.

CVC, which has had an interest in the betting and gaming sector with stakes in business such as William Hill and IG Group, attempted to buy Betfair last year in a ₤ 1bn bet9ja's welcome offer. However, the yohaig code two business stopped working to settle on cost.

The private equity group controls the Formula One motor racing organization.

Sky Bet will remain in Leeds with all personnel moving to the new entity.

Business produced net profits of ₤ 182m in the year to June 30 and pre-tax earnings of ₤ 50m.

Sky has struck a long-term brand licence agreement with Sky Bet.