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Entain CEE is a joint-venture owned by UK listed gambling giant, the UK Gambling Company, and Czech investment fund Emma Capital. It has agreed to purchase Poland’s STS Holding. The deal is valued at approximately PS750m. It will pay PLN24.80 for each share.
Entain CEE, a company founded in 2010, was created to explore opportunities throughout Central and Eastern Europe. It acquired SuperSport in November for approximately EUR600m, the largest bookmaker of Croatia. Entain hopes to use this acquisition to establish its presence in the Balkans and to launch a wider growth.
The company will buy the controlling 70% of STS shares from Mateusz Juroszek, chief executive officer and father Zbigniew Juroszek’s family foundations. The offer was accepted by signing a binding contract. The company will reinvest part of its proceeds in Entain CEE and, depending on the financial goals they achieve, grant them a 10% stake of the business.
Juroszek, who has been CEO for the past 11 years, will continue in that position. He will join the Entain CEE Board. Entain stated that he is critical to STS’s growth.
Juroszek stated: “I’m very excited to join the board of Entain CEE and see significant growth potential in the Polish market under Entain ownership.
“Entain, a world-class sports operator, has made significant investments in this region via SuperSport in Croatia. “We could not have chosen a more suitable partner to take STS through the next phase of growth. Entain clearly shares our vision and ambition for the future.
I look forward to leading and growing STS and working closely with the Entain CEE Team.
Entain CEO Jette Nygaard Andersen stated: “We are thrilled to be acquiring Poland’s leading sports betting operator, a market that is exciting and growing rapidly. STS has a strong brand, an omnichannel business model, and a top-notch CEO and management.
The transaction is in line with our Entain CEE Strategy and our M&A strategy to acquire high-quality companies with leading positions on attractive, growing, and regulated markets. STS is a key part of our plans to expand across Central and Eastern Europe.
Entain CEE and Emma Capital will fund the acquisition based on their respective stakes. Entain holds 75% of the company. It intends to raise PS600m via an equity placement as well as a retail offering to existing shareholders. The remainder of the funds will be used to make future acquisitions.
