Private equity firm to purchase 48.7% stake in Gamenet

New York-based private equity firm Apollo Global Management has agreed to acquire 48.67% of the issued share capital in Gamenet from the two largest shareholders in the Italian gaming operator.

Apollo will purchase 8,600,000 shares from TCP Lux Eurinvest, representing a 28.67% stake in Gamenet, as well as 6,000,000 shares from Intralot Italian Investments, accounting for 20.0% of the Gamenet business.

The agreements state that Apollo will pay €12.50 for each share, which values the overall purchase price at €182.5m (£157.7m/$203.1m). TCP will receive €107.5m for its shareholding, while Apollo will pay Intralot €75m for its stake.

Both deals are subject to anti-trust approval from the European Commission, as well as clearance from Italian gaming regulatory authority, Agenzia delle Dogane e dei Monopoli.

Gamenet said it expects to secure full approval before the end of 2019, with both transactions set to be completed in the first quarter of next year.

Apollo intends to fund the transaction, including any potential refinancing of the Gamenet’s existing debt, through a combination of its own cash resources, and a fully committed debt financing from international banks.