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

The Leeds-based operation, that includes websites such as Sky Vegas and Sky Bingo, is being purchased by private equity group CVC Capital Partners., external

Sky will be paid ₤ 600m when the bet9ja's welcome offer is completed next year and will keep a 20% stake.

Betting and video gaming was not considered as part of Sky's core business, a spokesperson said.

The sale would enable it to focus on the "significant growth opportunities" in pay-tv in the five European markets it operated in, Sky said.

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

Jeremy Darroch, president of Sky, said the yohaig code sale realised "considerable worth" for investors.

Shares in Sky rose 1.2% to 938p in London, valuing the business at simply over ₤ 16bn. The stock has risen by practically 20% in the previous 12 months.

'Successful possession'

Analysts at Citi said Sky might use some of the profits to buy out the remaining minority shareholders in Germany, including: "We believe a sale of Sky Bet is a reasonable tactical relocation."

Investec described Sky Bet is a "non-core however highly effective possession" and said profits ought to assist the company pay for financial obligation, which was anticipated to be ₤ 6.3 bn for the 2015 fiscal year.

CVC, which has actually had an interest in the betting and video gaming sector with stakes in business such as William Hill and IG Group, tried to purchase Betfair last year in a ₤ 1bn deal. However, the 2 business stopped working to agree on rate.

The private equity group controls the Formula One motor racing business.

Sky Bet will remain in Leeds with all personnel relocating to the new entity.

The service generated net earnings of ₤ 182m in the year to June 30 and pre-tax profits of ₤ 50m.

Sky has struck a long-lasting brand name licence contract with Sky Bet.

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