19th Dec 2016 08:09
LONDON (Alliance News) - Sports betting company GVC Holdings PLC said Monday it has agreed the EUR29.0 million sale of its payments processing business Kalixa Group to Singapore payments operator Senjo Group Pte Ltd.
The sale is likely to result in a "modest book loss" of around EUR4.0 million in 2017, said GVC.
FTSE 250-listed GVC said it will retain free cash within the Kalixa business equivalent to over EUR2.1 million, and the sales proceeds will be used to reduce its net debt position. The sale will have a neutral effect on GVC's earnings, said the company.
GVC also said the deal does not include the wallet business currently operated by Kalixa Py Ltd, which will be closed by GVC after the completion of the sale.
In calendar year 2015, the Kalixa Group booked a pretax loss of EUR7.0 million and generated EUR22.7 million in revenue, said GVC.
"We are pleased to announce the sale of Kalixa in line with our plans announced earlier in the year. Post-sale Kalixa will continue to process payments for GVC and our customers, but now with the opportunity to build a larger payment services business under new ownership which has payments as a core activity," said Kenneth Alexander, chief executive officer of GVC.
Shares in GVC Holdings were up 0.2% at 649.50 pence in early trading on Monday.
By Adam Clark; [email protected]
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