Sky Television, the United Kingdom-based telecommunications company known for its regional broadcasting, has decided to sell a contributing stake in Sky Bet to CVC Capital Partners, the Irish Examiner reports.
"In the final analysis, we think a sale of Sky Bet is a sensible strategic move and, although likely dilutive to consensus earnings per share, net/net probably positive for the overall investment case," the company said in a statement, according to the site.
"We rate Sky as a Buy."
CVC Capital Partners, another UK-based company, is a private equity firm that specializes in management acquisition. The firm is well-known for its expansion into Spain's "R Cable y Telecomunicaciones Galicia" and the Hong Kong Broadband Network.
The firm has confirmed that Sky Bet's management would not change and that it will continue to operate under the mechanisms of its original subsidizer. Employers of Sky Bet are expected to continue to report to Sky Television.
Sky Television especially grew in popularity following its sponsorship of the English Premier League, which it regularly covers and emits live streams for.
The company is expected to receive cash of £600 million once the deal has been solidified and is also exploring an equity stake of approximately 20 per cent in Sky Bet and ongoing board representation, Advanced Television reports.
"In the last ten years, we have successfully grown Sky Bet from a start-up to one of the leading online betting and gaming companies in the UK," Jeremy Darroch, Group Chief Executive of Sky, said, according to the site.
"This transaction will allow us to focus further on the substantial growth opportunities in our core international pay TV business while realising significant value for our shareholders."
