sky-sells-majority-stake-in-sky-bet

1 Sky Sells Majority Stake In Sky Bet

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Satellite broadcaster Sky has actually offered a bulk stake in Sky Bet, valuing the gaming operation at ₤ 800m.
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The Leeds-based operation, which includes sites 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 completed next year and will maintain a 20% stake.

Betting and video gaming was not considered as part of Sky's core business, a representative stated.
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The sale would allow it to on the "significant growth opportunities" in pay-tv in the five European markets it ran in, Sky stated.

The company recently completed the acquisition of Sky Italia and a 90% stake in Sky Deutschland, bringing its customer base to 20 million throughout Britain, Ireland, Germany, Austria and Italy.

Jeremy Darroch, president of Sky, stated the sale realised "substantial worth" for investors.

Shares in Sky increased 1.2% to 938p in London, valuing the company at just over ₤ 16bn. The stock has increased by practically 20% in the previous 12 months.
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'Successful asset'

Analysts at Citi said Sky could use a few of the earnings to buy out the remaining minority investors in Germany, adding: "We believe a sale of Sky Bet is a practical strategic move."

Investec described Sky Bet is a "non-core however extremely successful property" and said earnings need to assist the company pay down debt, which was expected to be ₤ 6.3 bn for the 2015 financial year.
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CVC, which has had an interest in the betting and video gaming sector with stakes in companies such as William Hill and IG Group, shopped Betfair in 2015 in a ₤ 1bn deal. However, the 2 companies failed to concur on cost.

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

Sky Bet will remain in Leeds with all staff relocating to the new entity.
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Business created net incomes of ₤ 182m in the year to June 30 and pre-tax profits of ₤ 50m.
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Sky has actually struck a long-lasting brand name licence contract with Sky Bet.

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