Sky sells 80% of betting business to CVC for €1.1bn

European pay-TV group Sky has agreed to sell a controlling stake in Sky Bet to CVC Capital Partners in a deal which values the online betting business at £800 million (€1.1bn), with Sky retaining a 20% stake.

Sky said the sale would enable it to focus on the growth areas within its pay-TV business, where it has recently expanded into continental Europe with the purchase of Sky Italia and 90% of Sky Deutschland.

Analysts at Citi said Sky could use the proceeds towards buying out the remainder of the minority shareholders in Germany.

“In the final analysis, we think a sale of Sky Bet is a sensible strategic move and, although likely dilutive to consensus earnings per share, net/net probably positive for the overall investment case,” they said. “We rate Sky as a Buy.”

CVC Partners, which has previously owned William Hill, said Sky Bet’s management and staff would remain with the company, which will maintain its close ties to Sky Sports.

Sky Bet, the title sponsor of English football’s Premier League, generated profit before tax of £50m in the year to the end of June, on revenues of £182m.

Meanwhile, Sky television customers in Ireland have been reassured that a letter they may have received telling them they are entitled to a refund is genuine.