Satellite broadcaster Sky has sold a bulk stake in Sky Bet, valuing the gambling operation at ₤ 800m.
The Leeds-based operation, that 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 yohaig code bet9ja's welcome offer is completed next year and will retain a 20% stake.
Betting and gaming was not considered part of Sky's core organization, a representative stated.
The sale would allow it to focus on the "considerable growth chances" in pay-tv in the five European markets it ran in, Sky stated.
The company just recently finished 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, said the sale realised "considerable value" for shareholders.
Shares in Sky increased 1.2% to 938p in London, valuing the company at just over ₤ 16bn. The stock has increased by nearly 20% in the past 12 months.
'Successful possession'
Analysts at Citi said Sky could use some of the profits to purchase out the staying minority investors in Germany, including: "We believe a sale of Sky Bet is a sensible tactical relocation."
Investec explained Sky Bet is a "non-core but extremely successful property" and stated proceeds need to assist the business pay for financial obligation, which was expected to be ₤ 6.3 bn for the 2015 fiscal year.
CVC, which has actually had an interest in the betting and gaming sector with stakes in companies such as William Hill and IG Group, tried to purchase Betfair last year in a ₤ 1bn deal. However, the 2 companies failed to settle on rate.
The personal equity group controls the Formula One motor racing organization.
Sky Bet will stay in Leeds with all personnel relocating to the brand-new entity.
Business created net revenues of ₤ 182m in the year to June 30 and pre-tax revenues of ₤ 50m.
Sky has actually struck a long-lasting brand licence agreement with Sky Bet.
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