Sky Sells Majority Stake In Sky Bet

Satellite broadcaster Sky has actually sold a majority stake in Sky Bet, valuing the gambling operation at ₤ 800m.

Register at Bet9ja using the promotion code YOHAIG for a N100,000 welcome bonus

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

Sky will be paid ₤ 600m when the deal is finished next year and will retain a 20% stake.

Betting and video gaming was not considered part of Sky's core business, a spokesperson said.

The sale would enable it to concentrate on the "substantial development chances" in pay-tv in the 5 European markets it ran in, Sky stated.

The business just recently finished 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.

Jeremy Darroch, chief executive of Sky, said the sale understood "significant value" for shareholders.

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 past 12 months.

'Successful asset'

Analysts at Citi stated Sky could utilize some of the profits to buy out the remaining minority investors in Germany, including: "We believe a sale of Sky Bet is a sensible strategic move."

Investec explained Sky Bet is a "non-core however highly effective possession" and said profits need to assist the business pay down financial obligation, which was expected to be ₤ 6.3 bn for the 2015 monetary year.

CVC, which has had an interest in the yohaig code wagering 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 stopped working to settle on rate.

The personal equity group manages the Formula One motor racing service.