Sky has agreed to sell its 20% stake in the online betting and gaming business, Sky Betting & Gaming, to Canadian online gaming firm The Stars Group.
The deal will see Sky receive roughly £425 million cash and 7.6 million newly issued shares – approximately 3% of The Stars Group – post-completion of the deal, worth approximately £145 million.
Sky said it will use the proceeds to reduce debt and reinvest in further growth opportunities.
“We are proud of what we have achieved from a standing start with Sky Betting & Gaming, crystallising over £1 billion in value for shareholders,” said Sky CEO Jeremy Darroch.
“The ability to create innovative products and successfully challenge for share in completely new markets has become a pattern at Sky and gives us the continued confidence to open up new opportunities and invest for future growth.”
The disposal follows Sky’s initial sale of an 80% majority stake in Sky Betting & Gaming to CVC Capital Partners in 2015. Taken together, Sky said it will generate total value of some £1.2 billion for Sky shareholders.