Sky Sells Majority Stake In Sky Bet

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

The Leeds-based operation, that 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 finished next year and will keep a 20% stake.

Betting and gaming was not regarded as part of Sky's core service, a spokesperson said.

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The sale would permit it to concentrate on the "significant growth opportunities" in pay television in the five European markets it ran in, Sky stated.

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

Jeremy Darroch, chief executive of Sky, said the sale understood "substantial worth" for investors.

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

'Successful asset'

Analysts at Citi said Sky could use some of the proceeds to buy out the remaining minority investors in Germany, adding: "We believe a sale of Sky Bet is a practical tactical relocation."

Investec described Sky Bet is a "non-core but extremely successful asset" and said profits should assist the business pay down debt, which was anticipated to be ₤ 6.3 bn for the yohaig code 2015 fiscal year.

CVC, which has actually had an interest in the wagering and video gaming sector with stakes in companies such as William Hill and IG Group, shopped Betfair in 2015 in a ₤ 1bn bet9ja's welcome offer. However, the 2 business failed to agree on price.