SBC News SkyCity sells $55m GiG stake as no longer “strategically necessary”

SkyCity sells $55m GiG stake as no longer “strategically necessary”

SkyCity has announced the decision to sell its stake in European-based online gaming platform Gaming Innovation Group (GiG).

The New Zealand-based operator – which was advised to “enter into an unconditional agreement” to sell off all its shares – said that from its 10% stake, proceeds from the sale would result in a net return of about NZ$55m after brokerage and legal costs.

This is a significant gain from the $40m the company paid in April 2022, with these  proceeds used to pay off existing debts, as part of the group’s plans in capital management. 

SkyCity highlighted that the relationship with GiG remained valuable through the operation of SkyCity Online Casino in Malta. However, the shares had reportedly not been part of the group’s core operations and therefore “not considered strategically necessary”. 

The shares have been sold to entities related to the Juroszek family, which now holds a combined 25.06% stake in the business.

Also this month, SkyCity reported that it expects underlying group earnings before interest, tax, depreciation and EBITDA of between $280m and $285m and underlying group net profit for 2024 of between $120m and $125m.

GiG, meanwhile, has been no stranger to sales, acquisitions, and the onboarding and offloading of shares of late. The London-based platform provider has been going through a transformative period over the past year, marked by the divestment of its media unit, which is now operating as a standalone entity, Gentoo Media.

The company has been engaged in acquisitions too, however. Just last week it acquired Titan Inc Limited, a digital media agency, for €3.2m, in an expansion of its SEO content services capabilities.

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