PPF sells its stake in Sazka to KKCG

Prague, Oct 15 (CTK) - The group PPF is selling its 50 percent stake in lottery company Sazka to the firm KKCG which will thus take complete control of Sazka, both groups announced yesterday but none of them has disclosed the price.

The transaction still needs the antitrust office UOHS approval.

According to server Aktualne.cz, KKCG has paid about Kc3.5bn for the stake.

"The price does not have to be the only point of the contract, so without more detailed information it is hard to say whether the sum is appropriate. But with regard to the fact how much both groups have paid for Sazka, it was a good investment for PPF," J&T Banka analyst Milan Lavicka said.

According to server Motejlek.com, KKCG will pay Kc5.57bn to PPF.

Sazka became insolvent last year due to its high debts and then was declared bankrupt. Its lottery business went to the groups PPF and KKCG in November 2011.

"From the PPF's point of view, this is the right investment decision. In one year, we have managed to renew confidence in Sazka which yesterday again controls over 90 percent of the [Czech] lottery market so PPF's stake can be sold at a very good price," said PPF investment director and top management member Martin Stefunko.

For Sazka, time for expansion now comes after its stabilisation, said KKCG.

"Sazka is a very strong platform for long-term development for us, not only in the lottery area but also in other retail businesses on the Czech market," said KKCG manager and board member Pavel Saroch.

With Sazka's debts, PPF and KKCG also acquired claims on the Bestsport company, the owner of Prague's multiple arena O2. Nothing has changed in both groups' cooperation in Bestsport's reorganisation, according to KKCG's statement.