Deutsche Telekom partners Centerbridge for Tipico bid – report
German telecommunications firm Deutsche Telekom has reportedly linked up with buyout group Centerbridge to launch a bid for domestic private sports betting group Tipico.
According to sources cited by the Reuters news agency, Deutsche Telekom is said believed to be seeking new revenue streams outside of its traditional business, and is hoping to secure a minority stake in Tipico.
Centerbridge would take a majority stake in Tipico, which is currently the subject of a soon-to-end auction as its founders look to sell the brand.
Sources suggest the joint bid could value Tipico at €1 billion (€1.1 billion), which is approximately nine times the operator’s expected core earnings.
Last year, the betting firm posted earnings before interest, tax, depreciation and amortisation of approximately €110 million.
However, the sources also stated that Deutsche Telekom and Centerbridge are likely to face competition from private equity group CVC and China-based buyout firm XIO Group, which are both expected to place bids.
Czech lottery firm Sazka, which is owned by investors Emma Capital and KKCG, could also bid, but is unlikely to present a high enough offer to challenge other interested parties.
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