SkyCity Makes Large Funding, Becomes GiG Major Shareholder
Casino operator SkyCity has become a major shareholder in the European online gaming company, Gaming Innovation Group (GiG).
Under the agreement, SkyCity will provide €25 million ($NZ42m) of new equity to help fund GiG €70m ($NZ116m) purchase of the online sports betting platform provider Sportnco.
With its latest investment, SkyCity becomes GiG's largest single shareholder with a stake of about 11 percent. According to the casino company, the increase in GiG's earnings from the acquisition will flow through to SkyCity's revenue, giving returns in excess of the invested capital.
Commenting on the deal, Richard Brown, GiG chief executive, said that both parties were focused on the "ever-evolving" digitalisation of gambling and would benefit from "a deeper strategic partnership with a focus on long-term value creation."
SkyCity was able to pay for the deal by selling non-core assets and existing debt.
GiG is an established online operator who we have come to know well since partnering in mid-2019 to launch the SkyCity Online Casino. The partnership has provided SkyCity with access to a complementary and high-growth gaming category and has enabled us to pursue an omnichannel strategy.
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