Regulatory Story
Go to market news section View chart   Print
GVC Holdings PLC  -  GVC   

Disposal of Kalixa Group

Released 07:00 19-Dec-2016

RNS Number : 1682S
GVC Holdings PLC
19 December 2016

GVC Holdings PLC

 ("GVC" or the "Company" or the "Group")

Disposal of Kalixa Group

In the Group's interim financial statements issued on 20 September 2016, GVC Holdings PLC (LSE:GVC), the multinational sports betting and gaming group, announced that it was in the process of selling its payments processing business operating under the brand name Kalixa ("Kalixa Group").

GVC is pleased to announce that it has agreed to sell the Kalixa Group to Senjō Group Pte. Ltd ("Senjō"), a global payments operator and investment firm headquartered in Singapore, for a total consideration of €29.0 million payable in cash on completion, subject to a completion accounts adjustment. The total consideration receivable by GVC is capped at €35.5 million.

Completion of the transaction ("Completion") is subject to a number of domestic and international regulatory approvals and is expected to occur during the first quarter of 2017. 

The sale does not include the wallet business currently operated by Kalixa Pay Limited, a subsidiary within the Kalixa Group, which will be closed by GVC post-Completion. In addition, prior to Completion, an amount equal to the free cash (over and above €2.1 million) in the Kalixa Group will be retained by GVC by way of dividend. The sale proceeds (net of expenses) will be applied towards reducing GVC's net debt. The sale of assets to Senjō and the run-down of Kalixa Pay will have a neutral effect on the GVC Group's EBITDA.

The Kalixa Group provides card acceptance acquiring, aggregation, and payment processing services to GVC and other corporates. The Kalixa Group will continue to provide payment processing services to GVC post-Completion under an existing contract.

For the financial year ended 31 December 2015, the Kalixa Group generated revenue of €22.7 million and a loss before interest and tax of €7.0 million([1]). As at 30 September 2016, the Kalixa Group had gross assets of €80.7

million, and a net book value of €41.9 million which includes €19.2 million of intangible assets. The sale in likely to result in a modest book loss on around €4m in 2017 which it is anticipated will be treated as an exceptional item.

Kenneth Alexander, CEO, said:

"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."

- ends -


For further information:

GVC Holdings PLC

Kenneth Alexander, Chief Executive

Tel: +44 (0) 1624 652 559

Richard Cooper, Group Finance Director

Nick Batram, Head of Investor Relations & Corporate Strategy


Tel: +44 (0) 20 7337 0110

Houlihan Lokey - Financial Advisor to GVC

David Sola

Tel: +44 (0) 20 7747 7575

Cenkos Securities plc

Mark Connelly, Jeremy Osler, Camilla Hume

Tel: +44 (0) 20 7397 8900



Media enquiries:

Bell Pottinger - PR Adviser to GVC

David Rydell, James Newman, Anna Legge, Laura Jaques

Tel: +44 (0) 20 3772 2500


Bell Pottinger - PR Adviser to Senjō

Tim Williamson, Ena Yow

Tel: +65 (0) 6221 7310



About GVC Holdings PLC

GVC Holdings PLC is a leading e-gaming operator in both B2C and B2B markets. GVC has four business segments with a number of brands; Sports labels (bwin, Sportingbet, gamebookers), Gaming labels (partypoker, partycasino, Foxy Bingo, Gioco Digitale, CasinoClub), B2B and non-core assets. GVC acquired digital entertainment plc on 1 February 2016. The Group is headquartered in the Isle of Man, is a constituent of the FTSE 250 index and has licences in more than 15 countries.


For more information see the Group's website: 


[1] The rate of exchange used to convert £ is £1:€1.20

This information is provided by RNS
The company news service from the London Stock Exchange

London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.


Disposal of Kalixa Group - RNS