In October 2020, MultiChoice acquired a 20pc shareholding in Blue Lake Ventures Limited, a pan-African sports betting and entertainment business trading as BetKing, Now via its wholly-owned subsidiary, Mwendo Holdings B.V, Multichoice has acquired a further 29pc.
This means that Multichoice now holds in BetKing, a non-controlling stake of 49pc transacted for a total of $281.5m, this is in line with its strategy to expand its entertainment ecosystem and develop meaningful drivers of future value.
The latest deal includes the creating of an employee share option plan by allocating 10pc of the company’s equity. Also, shareholders in the company will have shares in the diluted business.
Multichoice explained that its initial 20pc stake will be diluted to 18pc, then its subsidiary Mwendo will then buy 9.6pc of BetKing for $100 million as part of an equity raise to fund expansion. This will bring its stake to 27.6pc.
Mwendo will also acquire a 21.4% stake in BetKing from minority shareholders, who are exiting partially, for $181.5-million, finally pushing the total stake to 49%.
BetKing is a leading digital and sports entertainment platform focused on the African continent. BetKing is pioneering product verticals that keep sports fans engaged with a mission to create an integrated product, payment, and technology solutions that are optimized for local market needs – delivered through its unique online and agent distribution model that empowers entrepreneurs across the continent.
BetKing’s vertically integrated operating model is unique on the continent and enables the company to operate at scale and speed whilst also being able to customize its approach for new markets and adjacent segments. The business is expected to expand rapidly across Africa in the coming years, whilst broadening its vertical presence to further enhance its digital entertainment portfolio.
“Pursuing an adjacency such as sports betting creates a natural extension to the MultiChoice video entertainment platform to further enhance its product set. Well-established in Europe and fuelled by its legalization in the USA in 2018, the global sports betting market is currently experiencing a surge in growth,” says MultiChoice.
Further, the company notes that Africa currently holds only 2pc of global sports betting revenue, which justifies the BetKing investment, as the continent is poised for significant momentum as it begins to play catch-up.