Under the agreement with Yeonama Holdings Co. Limited, Allwyn will acquire the remaining minority interest in Sazka Delta AIF Variable Investment Company Ltd, an entity through which it holds part of its interest in OPAP, for €327.4m (£273.6m/$372.4m).
Allwyn previously held a 41.2% stake in OPAP, having gradually increased its holding in the business.
Taking into account the net debt and working capital of Sazka Delta, Allwyn said the deal implies a premium of more than 10% on OPAP’s current market share price.
Allwyn will finance the acquisition with cash from its balance sheet, including cash raised by a recent €600.0m bond issuance.
“Acquiring the remaining minority interest in Sazka Delta is an important step for Allwyn and continues our long-term strategy of increasing stakes in our operating companies,” Allwyn chief executive Robert Chvatal said. “This transaction concludes a series of transactions through which we have bought out the interests of other shareholders in Sazka Delta over the last three years.
“Together with our election to receive OPAP’s dividends as scrip and open market share purchases, we have increased our economic interest in OPAP from 23.7% in 2018 to 48.1% today.
“We are very pleased with OPAP’s recent performance and are excited about opportunities to drive further growth.”
The deal comes after Allwyn Entertainment last month announced plans to publicly list on the New York Stock Exchange via a partnership with special purpose acquisition company Cohn Robbins Holdings Corp. (CRHC).
Allwyn said that the listing would result in a total enterprise value of approximately $9.3bn. The lottery giant said it hoped that the listing would support its long-term goal of becoming a global lottery-led entertainment platform.