Intralot sale of SVL stake equivalent to 12 times annual profit
Intralot SA, the Greek company that shared the largest stake in Supreme Ventures Limited, SVL, up to October, is reporting that the sale of its shares in the Jamaican lottery company equated to 12 times annual profit.
Intralot sold its lottery stake amid rising debt that climbed to euro1 billion at September 2017. It signed a share purchase agreement with Zodiac International Investments & Holdings Limited for the sale of its 50.05 per cent stake in subsidiary Intralot Caribbean Ventures Limited, which owned 49.9 per cent of SVL.
The transaction was concluded on October 11, the results of which will be recognised in the financial statements of the fourth quarter and classified as a discontinued operation, Intralot said. Intralot Americas markets includes USA, Peru, Brazil, Argentina, Mexico, Jamaica, Chile, Colombia, Guatemala, Dominican Republic, Suriname, Uruguay, Curacao and St Lucia.
"In October 2017, Intralot de-invested from its Jamaican operations. The transaction totalled US$40 million, approximately 12 times the annual net profit-after-tax attributable to Intralot's equity holders," stated the company in its financials for the nine-month period ending September.
Zodiac's holdings in SVL has reportedly fallen to 38 per cent since the acquisition, a development that has been linked to transactions for a bond it issued in tranches to finance the purchase.
Intralot SA, a listed company established in 1992, is a leading gaming solutions supplier and operator active in 55 regulated jurisdictions around the globe and 5,300 employees. Group revenue at euro1 billion increased by 13.4 per cent over nine months, while EBITDA at euro137 million rose 10.5 per cent year on year.
Intralot earned nine-month net profit of euro2.78 million, compared with euro32 million a year earlier.
The group's total equity now stands at euro142 million, down from euro197 million as at December 2016. Within the same period, its long-term liabilities expanded to euro1 billion from euro694 million.
SVL made flat profits of $1.18 billion in each of the past two years. The company is now turning over $44 billion in annual revenue, but that is expected to rise this year with its acquisition of horse racing business Caymanas Track Limited.