Fortuna Entertainment Group owners weighing up sale
Czech-Slovak investment firm Penta Investments engages JPMorgan to assist with process that could value operator at €2bn
The owner of Fortuna Entertainment Group (FEG) is weighing up a possible sale of the European operator which could value the firm at up to €2bn.
Originally reported by Reuters, and since confirmed to EGR, Penta Investments has engaged JPMorgan to explore potential options for the business.
In a statement provided to EGR, a spokesperson for Penta said: “While it’s true that Penta has initiated discussions with JPMorgan to explore various strategic options for Fortuna Entertainment Group, it’s essential to emphasise that this process extends beyond a mere transactional sale.
“Rather, it underscores Penta’s commitment to meticulously evaluating alternative avenues for the future development of the franchise, ensuring sustainable growth and long-term value creation.
“As discussions are in their early stages, it’s premature to speculate on the specific outcomes. However, the possibility of a majority sale remains within the realm of consideration.
“Penta, as a long-term investor, remains committed to the sector. Our continued interest in the industry is driven by a robust belief in its potential and enduring value. We find the sector attractive and are looking to stay in it.”
FEG is the only gambling firm within Penta’s portfolio, with the group predominantly specialising in long-term investments across media, healthcare, manufacturing, financial services, real estate and retail.
These include Prima Banka in Slovakia, pharmaceutical chain Dr. Max and aluminium giant Slovalco.
According to the latest available annual report from 2022, Penta has total assets north of €4bn.
The potential sale of FEG, which operates in Romania, Czechia, Slovakia, Poland and Croatia, comes after Penta took the business private in 2018.
The investment firm first took a stake in the operator back in 2005, before eventually taking the group off the Prague and Warsaw Stock Exchanges to become wholly owned by its subsidiary, Fortbet Holdings.
FEG named former Paddy Power head Victor Corcoran as CEO in September 2022 after the departure of Per Widerström.