Investment group KKCG has sold off a 4.27% stake in Allwyn International to another Czech investment fund, J&T Arch Investment. The deal values Allwyn’s share capital at €11.20 billion ($13.04 billion).
KKCG will take away €500 million in total proceeds from the sale. The deal was structured as a sale of equity in Allwyn by KKCG’s wholly owned subsidiary Allwyn AG. It will retain a majority 95.73% stake in Allwyn, held via Allwyn AG.
The sale, Allwyn said, will allow more investors to support the business moving forward. J&T Arch is a qualified investor fund on Prague’s Stock Exchange, with a net asset value of approximately €5.6 billion.
KKCG gives investors a stake in Allwyn’s rapid growth
Allwyn originates in the Czech Republic, starting out as Sazka Group. This business previously operated the Czech national lottery and was under state control. KKCG acquired a majority state in 2011.
This was followed by a joint venture with EMMA Capital, another Czech investment business, and expansion into Greece via OPAP, Italy through Lottoitalia and Austria with Austrian Lotteries. KKCG later bought EMMA Capital’s 25% stake in Sazka Group.
Under its sole control KKCG later acquired a majority stake in Casinos Austria, rebranded to Allwyn in 2022 then secured the UK’s fourth National Lottery licence, taking control in February 2024.
KKCG founder Komárek: Stake sale a ‘significant step’
Plans for a public listing have twice been set out, then shelved, with a UK listing scuppered by Brexit and plans for a New York Stock Exchange float shelved due to market volatility. However Allwyn has always said this represents a delay to its listing plans, rather than a cancellation.
Enabling more investors to get involved with the business will allow them to benefit from the group’s growth trajectory, KKCG founder and Allwyn chair Karel Komárek said.
“This is another significant step for Allwyn,” Komárek said. “It demonstrates the positive impact of KKCG’s vision and support for the business and investor confidence in Allwyn’s successful growth-led strategy.
“I see many opportunities ahead for significant and sustainable value creation for Allwyn. I’m delighted that a wider range of investors can now join us on that journey.”
J&T talks up growth prospects
Patrik Tkáč, co-founder of the J&T financial group, also talked up the deal. He said it is the culmination of years of relationship with KKCG’s Komárek.
“J&T Arch’s entry into Allwyn is the culmination of many years of business relations with Karel Komárek,” Tkáč said. “With his team, he has built an international entertainment platform out of a domestic player. This is another great story of a leading Czech entrepreneur’s business and the opportunity for our investors to participate in its future growth.”
Adam Tomis, member of J&T Arch’s investment committee, added: “Allwyn’s geographical footprint as the operator of national lotteries makes it unique. Our portfolio thus gains an investment in a sector characterised by strong market positions, resilience to economic cycles and high conversion of profits into free cash flow.
“Allwyn is in an excellent position to continue expanding and growing.”
Another major development at Allwyn
The sale represents the latest step in Allwyn’s ongoing growth and expansion plan. In July, Allwyn International announced the sale of its land-based casino assets in Germany and Australia. It has also acquired the remaining minority stake in Greece- and Cyprus-facing online operator Stoiximan.
This came after Allwyn in January agreed to acquire a 51% stake in Logflex MT Holding, the owner of Novibet. Allwyn hopes to complete the purchase of the holding in the online operator before the end of 2025.
Meanwhile, in August Allwyn appointed Kresimir Spajic as CEO of Allwyn Digital to lead its global digital expansion. With its new digital business, Allwyn hopes to evolve in a more digitally led way and provide bettors with engaging experiences.
In addition, Allwyn also recently detailed plans for a new lottery terminal rollout in the UK. It has pledged to install more than 30,000 Waves terminals at retail locations across the UK. Thousands of machine are set to be installed over the coming weeks.
Deal values Allwyn at €11.20 billion, while KKCG retains a 95.73% holding in the lottery and gaming giant.