OPAP announces sale of minority interest in Betano business

OPAP has notified investors that its 100% subsidiary, OPAP Investment Ltd, has executed a share purchase agreement with Rubidium Holding 2 Ltd for the sale of its minority interest in the Betano business.

Having previously held a 36.75% stake in the pan-European sportsbook subsidiary of Kaizen Gaming, it’s understood the divestment was considered to be of strategic importance to OPAP as the group looks to strengthen its Greek and Cypriot igaming presence through its flagship Stoiximan brand.

As part of the deal, OPAP will initially receive an upfront settlement of €50m (£41.8m) on a debt-free basis, with the group then being entitled to further earnout payments for the financial years 2022, 2023 and 2024 based on Betano’s future performance.

The price for the handover corresponds to the fair market value of OPAP Investment’s 36.75% stake, as evaluated by an independent financial assessor.

Founded in 2017, the Betano business contributed EBITDA losses of €400,000 in OPAP’s FY 2021 financial results and the group will now transfer its minority interest in the sportsbook to Rubidium Holding – a fully-owned indirect subsidiary of SAZKA Group a.s. – providing a couple of minor conditions are met.

The closing of the transaction is contingent upon the receipt of all required regulatory approvals and the corporate separation of the Betano business from KGL’s business activities in Greece and Cyprus, which are represented by its remaining stake in Stoiximan, of which OPAP controls an 84.49% share.

OPAP, meanwhile, will retain sole control of the Stoiximan brand, having previously acquired a majority stake from KGL following back-to-back investments in the business in 2019 and 2020.