The majority owner of Sky Betting and Gaming, CVC Capital are contemplating the possibility of a stock market flotation of the Leeds-based online betting operator.
According to Reuters, the equity firm is looking to capitalise on soaring thriving equity markets and the continuing popularity of online betting, hiring investment bank Rothschild to examine whether a stock market listing of the British firm could be a prosperous venture.
The decision has come in anticipation of the incoming government regulations on retail betting machines in the UK, which could potentially lead to Sky Bet, an operator that’s solely online increasingly more alluring to investors.
However, with Sky Bet benefiting from a widespread sponsorship deal with the English Football League the group will be watchful of the review, as it is also relating to betting and gaming advertising standards.
Having had its majority stake acquired by CVC Capital for £800 million in 2014, Sky Bet has gone from strength to strength, reporting a 38% increase to £516 million in revenue in its most recent results. Furthermore, these results represented continued growth for the online operator, having recorded revenue of £248 million in its 2015 results. Additionally 20% of Sky Bet is still owned by Sky, which is also subject to a lucrative takeover bid from Twentieth Century Fox.
The online betting market was also bolstered earlier in the year, when Ladbrokes Coral was purchased by online gaming online gaming company GVC.
History suggest that it would be naive to rule out CVC floating Sky Bet, as after purchasing William Hill in 1999, the group were listed in 2002.
Source: SBC News
