Sky completes sale of Sky Betting & Gaming stake for £635m to The Stars Group
Sky completes sale of Sky Betting & Gaming stake for £635m to The Stars Group
Following the announcement of the 21st April, Sky has confirmed today the completion of the sale of its 20% stake in Sky Betting & Gaming (“SBG”) to The Stars Group Inc. (“The Stars Group”) for a total of £635m.
This disposal follows the initial sale of Sky’s majority stake in SBG to CVC Capital Partners (“CVC”) in 2015 which, taken together, has crystallised a total value of c.£1.4bn for Sky shareholders.
From its inception in 2001, Sky Bet grew organically under Sky’s ownership to become one of the leading operators in the UK’s online betting and gaming markets, benefiting from a strong partnership with Sky Sports and Sky’s technology and product innovation expertise. After selling a majority stake to CVC in 2015, Sky continued to work closely with its partners at CVC and the SBG management team to drive the further development of the business. As part of the transaction, Sky will continue to license the Sky Betting & Gaming brands to The Stars Group.
At Closing of the Transaction, Sky has received c. £426m in cash and c 7.6m shares in The Stars Group, valued at c. £208m at last night’s closing share price. Sky will use the proceeds principally to reduce debt and reinvest in further growth opportunities. In addition, a small proportion of the proceeds will be used to fund an innovation centre to be built on its Osterley campus which will house technology engineers and software developers focusing on innovation across Sky’s world class broadcast and streaming platforms.
The transaction is part of a transaction under which CVC will sell the whole of its stake in SBG to The Stars Group.
For further information, please contact
Analysts/Investors
Robert
Kingston
07720 409565
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Media
Andrew Swailes
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0333 100 2333Notes to editor
Sky will recognise a gain on disposal in the Income Statement of more than £600m based on the difference between the value of the total consideration received, and the carrying value of the Group’s investment in SBG.
The net impact of the transaction to Sky’s Group earnings is expected to be slightly positive in fiscal 2019 and thereafter.
The c. 7.6m newly issued The Stars Group shares will be recognised as an equity investment on the Group’s balance sheet, and will be “marked to market” each month, with movements in fair value being recognised in reserves.
Sky received cash of £600 million on completion of the sale of SBG in 2015 and received a further £196m thereafter from a vendor loan payment note and recapitalization of the SBG business. Sky also retained a 20% stake in SBG.
About Sky
Sky is Europe's leading entertainment company, serving 23 million customers across seven countries - UK, Ireland, Germany, Austria, Italy, Spain and Switzerland. The company has annual revenues of £12.9 billion and is Europe’s leading investor in television content with an annual programming spend of £7 billion.
From exclusive partnerships with HBO, Showtime and Warner Bros. to Sky Original Productions, Sky offers the best and broadest range of content along with the best viewing experience to suit each and every customer. Whether that’s through the multi-award winning next generation box, Sky Q, or Sky’s contract-free online streaming service, NOW TV, customers have access to the latest movies, drama, sports and kids entertainment wherever and whenever they like. This is all supported by Sky’s best in class customer service.
Sky’s success is not just based on what the company does but how it does it. Named as one of the Top 10 Green Companies in the World by Newsweek, one of the world’s most recognised rankings of business’s environmental performance, Sky ensures its responsible business strategy is embedded right across the group.
Three new major commitments have been launched for Sky’s corporate campaign Sky Ocean Rescue; the reduction of our own single-use plastics by 2020; an investment fund of £25 million over five years in technology solutions; and support of marine protected areas across our markets.
Sky has over 31,000 employees and is listed as one of The Times Top 50 employers for women. Sky is listed on the London Stock Exchange (SKY).
About The Stars Group
The Stars Group is the owner of the “Pokerstars” brand which is the number one global online poker site, with over 115m registered customers.
