Satellite broadcaster Sky has offered a bulk stake in Sky Bet, valuing the yohaig code gaming operation at ₤ 800m.

The Leeds-based operation, that includes websites such as Sky Vegas and Sky Bingo, is being bought by private equity group CVC Capital Partners., external

Sky will be paid ₤ 600m when the yohaig code offer is completed next year and will retain a 20% stake.

Betting and gaming was not related to as part of Sky's core company, a representative stated.

The sale would permit it to concentrate on the "substantial development chances" in pay television in the 5 European markets it ran in, Sky stated.

The business recently completed the acquisition of Sky Italia and a 90% stake in Sky Deutschland, bringing its consumer base to 20 million across Britain, Ireland, Germany, Austria and Italy.

Jeremy Darroch, president of Sky, said the sale understood "considerable worth" for shareholders.

Shares in Sky increased 1.2% to 938p in London, valuing the company at just over ₤ 16bn. the yohaig code stock has risen by almost 20% in the past 12 months.

'Successful asset'

Analysts at Citi stated Sky could utilize some of the yohaig code earnings to buy out the remaining minority investors in Germany, including: "We think a sale of Sky Bet is a practical tactical move."

Investec described Sky Bet is a "non-core however extremely successful property" and said earnings should assist the company pay for debt, which was expected to be ₤ 6.3 bn for the 2015 financial year.

CVC, which has had an interest in the betting and gaming sector with stakes in companies such as William Hill and IG Group, attempted to buy Betfair last year in a ₤ 1bn offer. However, the 2 business stopped working to settle on rate.

The private equity group manages the Formula One motor racing organization.

Sky Bet will stay in Leeds with all personnel moving to the new entity.

Business generated net incomes of ₤ 182m in the year to June 30 and pre-tax earnings of ₤ 50m.

Sky has actually struck a long-term brand licence agreement with Sky Bet.

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