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MultiChoice Buys Additional 20% Stake in BetKing

Multichoice has acquired an additional 20% stake in BetKing, a pan-African sports betting group, for an undisclosed amount. This is the second time MultiChoice is acquiring a BetKing stake. Back in October last year the owners of Dstv and Gotv bought a 20% stake in BetKing.

The pay-TV operator said through its wholly-owned subsidiary, Mwendo Holdings B.V., is increasing its holding in BetKing to a non-controlling stake of 49%. MultiChoice said this deal is in line with its strategy to expand its entertainment ecosystem and develop meaningful drivers of future value.

The total transaction consideration of the deal is $281.5 million which will be debt-funded.

Mwendo will buy a 21.4% stake in BetKing from partially-exiting minority shareholders for $181.5 million, which is at the same valuation as the equity issuance, resulting in MultiChoice’s shareholding in BetKing to increase to 49%. A BetKing employee share option plan (ESOP) will be created to house 10% equity.

The acquisition of a 9.6% stake in BetKing for $100m by Mwendo as part of an equity raise to fund BetKing’s expansion and medium-term business plan, resulting in MultiChoice’s shareholding in BetKing increasing to 27.6%.

“As a result of the above Transaction, the earn-out from the original 20% investment transaction concluded in October 2020 will be triggered and a further $31 million (R million) will be payable,” the company informed investors.

“This will require MultiChoice to raise R4.0bn in ZAR-denominated debt, a condition precedent to the transaction.”

“By leveraging its own proprietary technology which allows it to adapt to the unique challenges of each market, BetKing is particularly well-positioned to capture a large share of the African growth opportunity,” MultiChoice said.

“It will also benefit from SuperSport’s strong brand and reach across the continent, as well as MultiChoice’s regional presence and acumen. BetKing will use the proceeds of the capital raise to expand its product set and geographic footprint to more markets on the continent.”

Jiji Nigeria
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