(source: FB Fortuna)
One of Slovakia's largest domestic investment groups, Penta, has announced that it plans to sell a major share in its second-largest company, Fortuna, the Denník N daily reports. If Penta were to sell just half of the consumer betting agency the transaction could fetch up to €1 billion, analysts predict. Penta claims it wants to divest because its investments in healthcare are a bigger priority than its gambling assets.
Fortuna Entertainment Group is the biggest player in gambling across central and eastern Europe.
Assuming Penta manages to attract a good offer for Fortuna, it would be its biggest deal ever. It is its second-most valuable business, after its Dr Max pharmacy network, which stretches from Poland to Italy.
Fortuna has long been among the top three most profitable companies in the Penta group. Its profit before tax, interest and depreciation (EBITDA) in 2022 stood at around €160 million. The figure for last year, which has yet to be announced, is expected to be as high as €200 million.
As reported by Reuters and later confirmed by Penta, the sale is in its early stages, and a competitive sale process is expected to commence by the end of the summer.
However, the sale still might not happen. Penta initiated a similar tender for its hospitals in Slovakia, the Czech Republic and Poland five years ago, but no offers met its expectations. The sale was shelved and Penta remains the sole owner.
Why does Penta wants to sell a share in Fortuna?
The group is aiming to further boost Fortuna's expansion in cooperation with a new co-investor. Potential buyers could include major European gambling operators and private investment firms in the betting sector.
Penta also needs the funds that Fortuna's sale would raise to invest in its most demanding business, healthcare. The new funds would be used to expand the Dr Max pharmacy network and modernise its hospitals. Penta says healthcare is a higher priority for it than gambling.
Penta plans to raise more funds for healthcare by establishing its first investment fund for external investors. Previously, Penta invested only in the funds of co-owners. Similar approaches have long been used by investment groups like J&T.
Fortuna's background
The group began developing its betting business about 20 years ago. Initially a Czech company, Fortuna expanded by opening new branches and acquiring competitors in Slovakia, Poland, Croatia and Romania.
Fortuna currently employs approximately 6,300 people, representing about one-sixth of the entire workforce across the Penta group.
In 2022, Fortuna's total revenues reached €540 million, contributing to overall group revenues of €7.6 billion.
