Sky sells Controlling Stake in Online Division Sky Betting & Gaming to CVC Capital Partners

Sky sells Controlling Stake in Online Division Sky Betting & Gaming to CVC Capit

Sky Plc (SKY), UK's largest pay-TV provider, is all set to sell a controlling stake in online division, Sky Betting & Gaming, to CVC Capital Partners because it wants to focus on its television operations.

Sky will receive 600 million pounds ($941 million) on completion of the agreement and further deferred and contingent consideration of as much as 120 million pounds. The Sky Bet deal values the unit at 800 million pounds and Sky would retain a stake of about 20%.

"This transaction will allow us to focus further on the substantial growth opportunities in our core international pay-TV business while realizing significant value for our shareholders", Chief Executive Officer Jeremy Darroch said in the statement.

Sky operates in Britain, Italy, Germany, Austria and Ireland. It is the continent's biggest pay-TV provider with 20 million customers in five countries, including Ireland and Austria.

Sky has spent over $10 billion to merge Sky Italia Spa and Sky Deutschland AG with its UK business. Both Standard & Poor's and Moody's Investors Service slashed the company's credit rating in November to the second-lowest investment grade.

Sky's business in the UK, with 11 million subscribers, formerly known as British Sky Broadcasting Group Plc, is the biggest and most senior partner. In the Sky Bet deal, Goldman Sachs is financial adviser to Sky. There is a possibility that Sky could also get more funds CVC receiving a sure return on its investment.

Sky has moved into a long-term brand license agreement. Sky Betting & Gaming consists of core sports betting business and a casino gaming operation, Sky Vegas and Sky Casino, Sky Bingo and Sky Poker.

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