Sky Sells Majority Stake In Sky Bet

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Satellite broadcaster Sky has sold a bulk stake in Sky Bet, valuing the gaming operation at ₤ 800m.

The Leeds-based operation, which consists of 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 retain a 20% stake.

Betting and gaming was not considered part of Sky's core organization, a representative said.

The sale would allow it to focus on the "considerable development chances" in pay tv in the five European markets it operated in, Sky said.

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

Jeremy Darroch, president of Sky, said the sale understood "considerable worth" for shareholders.

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

'Successful possession'

Analysts at Citi said Sky might utilize a few of the earnings to buy out the remaining minority shareholders in Germany, adding: "We believe a sale of Sky Bet is a reasonable tactical relocation."

Investec explained Sky Bet is a "non-core however extremely successful possession" and said earnings ought 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 betting and 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 companies failed to agree on price.

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