Entain CEE submits bid for Poland’s largest gaming company

EMMA Capital Group, a 25% shareholder in Entain CEE, announces that Entain CEE is ready to buy 100% of Polish sports betting operator STS – the largest Polish company operating in the industry listed on the Warsaw Stock Exchange. The offer price is PLN 24.80 per share, which represents a price of over EUR 840 million (CZK 20 billion) for 100% of the company. The resulting amount would be paid by both shareholders of Entain CEE (Entain plc and EMMA Capital) proportionally, according to the size of their shares (i.e. in the ratio 75:25).

 

STS provides its services both on the Internet (which accounts for 82% of the company’s revenues, with almost 800,000 active users) and through its branch network (400 points of sale). In 2022, it achieved EBITDA of PLN 273 million. Approximately 70% of the company’s shares are held by the families of the company’s founder Zbigniew Juroszek and his son Mateusz – who currently serves as Chief Executive Officer – through their foundations.

“The acquisition of a company as renowned as STS undeniably is, precisely fulfils the purpose for which Entain CEE was founded: to combine the financial strength of the parent company Entain plc with EMMA’s experience in the Central and Eastern European markets and become the most important player in the region,” says Pavel Horák, Investment Director at EMMA Capital, commenting on the transaction.

Both father and son Juroszek have committed to sell their entire 70% stake, investing part of the proceeds in Entain CEE and consequently becoming its shareholders with a 10% stake (whereby Entain plc’s stake will adjust to 67.5% and EMMA Capital’s to 22.5%). Mateusz Juroszek adds: “This is a significant milestone for STS. It will become a member of a very important business family, which includes both the world leader in the industry and Czech partners, with whom we have long and very friendly relations.”

Pavel Horák added that EMMA Capital will fund its share of the purchase price, which will most likely amount to approximately EUR 160 million (CZK 4 billion), from its own resources.

EMMA Capital is a private investment holding founded in 2012 by Jiří Šmejc. In recent years, it has focused chiefly on markets in the European Union, but is also present in other markets in Europe and Asia. It usually plays an active role in companies where it acquires an equity stake, participating in their management, development and in any eventual restructuring. EMMA’s investment priority is retail and customer-oriented companies.

Entain plc is a leading global sports-betting, gaming and interactive entertainment group, operating both online and in the retail sector. The Group owns a comprehensive portfolio of globally-renowned brands, including bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds Foxy Bingo, Gala, GiocoDigitale, and Partypoker.  The Group has a 50/50 joint venture, BetMGM, a leader in sports betting and iGaming in the US. Entain places great importance on ESG, for which has received an AA rating from MSCI. For further information, please visit www.entaingroup.com.

Contact:

Pavel Zuna
Tel.: +420 602 475 698
Email: [email protected]