FTSE100 GVC Holdings has this morning disclosed that it will sell its 50% stake in Spanish bookmaker Sportium to joint-venture partner Grupo CIRSA for €70 million.
GVC secures its interest in Sportium, through its ownership of Ladbrokes, who in 2013 launched Sportium entering a 50/50 partnership with CIRSA.
Last May, Spanish business news sources reported that CIRSA had filed a 2018 Madrid Court claim against GVC, demanding that the FTSE firm sell its stake in Sportium as the JV partnership had been altered by GVC £4 billion takeover of Ladbrokes Coral Plc.
Confirming the sale of its JV stake, GVC governance revealed as part of the disposal agreement the FTSE will become a B2B supplier to Sportium.
Updating investors, GVC brands Sportium ‘as predominantly active within the Spanish retail betting market’ and contributing £2.5 million to Group proforma operating profits. GVC governance maintains that the transaction will the group focus its Spanish presence on leading digital disciplines.
GVC Group CEO Kenneth Alexander said: “GVC is one of the leading online gaming operators in Spain with bwin and the disposal of our interest in Sportium enables us to simplify our business in this market. We have enjoyed a good working relationship with Cirsa and are pleased to be able to support them through a new B2B partnership.”