Satellite broadcaster Sky has offered a majority stake in Sky Bet, valuing the gambling operation at ₤ 800m.
The Leeds-based operation, which includes websites such as Sky Vegas and Sky Bingo, is being purchased by private equity group CVC Capital Partners., external
Sky will be paid ₤ 600m when the bet9ja's welcome offer is finished next year and will retain a 20% stake.
Betting and video gaming was not considered as part of Sky's core company, a representative stated.
The sale would allow it to focus on the "significant development chances" in pay tv in the 5 European markets it ran in, Sky said.
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The company just recently finished the acquisition of and a 90% stake in Sky Deutschland, bringing its customer base to 20 million throughout Britain, Ireland, Germany, Austria and Italy.
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Jeremy Darroch, primary executive of Sky, said the sale realised "considerable value" for investors.
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Shares in Sky increased 1.2% to 938p in London, valuing the business at just over ₤ 16bn. The stock has increased by nearly 20% in the previous 12 months.
'Successful asset'
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Analysts at Citi stated Sky might use some of the earnings to purchase out the remaining minority investors in Germany, including: "We believe a sale of Sky Bet is a practical tactical move."
Investec explained Sky Bet is a "non-core however highly successful asset" and stated profits should help the business pay for debt, which was expected to be ₤ 6.3 bn for the 2015 financial year.
CVC, which has had an interest in the wagering and gaming sector with stakes in companies such as William Hill and IG Group, shopped Betfair last year in a ₤ 1bn deal. However, the two companies stopped working to settle on price.
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The personal equity group manages the Formula One motor racing business.
Sky Bet will stay in Leeds with all staff transferring to the new entity.
The service created net revenues of ₤ 182m in the year to June 30 and pre-tax profits 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
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