Sportingbet has agreed to dispose of its Turkish language website for a minimum consideration of €142.5m to the East Pioneer Corporation, which is backed by European online gaming firm GVC.
The disposal has been structured to be a three-year earn-out followed by a balancing final payment. Andrew McIver, Sportingbet group chief executive, commented: "Following this disposal, Sportingbet will derive the large majority of its earnings from regulated territories. The proceeds from the sale of this unregulated income stream will be used to drive forward the rest of the group. We have clearly shown our strategic intent and look to the future with confidence. The group’s future is underpinned by the quality of our best in class global sportsbook and diversified business model."
Sportingbet will seek to transfer as much of the business as possible (excluding the intellectual property rights) at completion. It will continue to provide the trading platform to GVC Sports on a transitional basis for a limited period until such time as GVC Holdings can provide such systems to the purchaser itself, or until the expiry of the relevant notice periods if triggered by any change of control provisions.
The transaction is conditional on Sportingbet and GVC achieving shareholder approval and on GVC re-admission by December 31.
Sportingbet’s Turkish website was instrumental in Ladbrokes walking away from a potential deal with the group last week.
