MultiChoice Buys Additional 20% Stake in Pan-African Sports Betting Group Betking


MultiChoice, Africa’s biggest pay-TV operator, has acquired an additional 20% stake in BetKing, a pan-African sports betting group, for an undisclosed amount. Last October, MultiChoice bought a 20% stake in Blue Lake Ventures, a pan-African
sports betting and entertainment business trading as BetKing.

The pay-TV operator said through its wholly-owned subsidiary, Mwendo Holdings B.V., is increasing its holding in BetKing to a non-controlling stake of 49%. MultiChoice said this deal is in line with its strategy to expand its entertainment ecosystem and develop meaningful drivers of future value.

BetKing is a leading digital and sports entertainment platform focused on the African continent.

Pioneering product verticals that keep sports fans engaged, BetKing’s mission is to create integrated product, payment and technology solutions that are optimized for local market needs – delivered through its unique online and agent distribution model that empowers entrepreneurs across the continent.

BetKing’s vertically integrated operating model is unique on the continent and enables the
company to operate at scale and speed whilst also being able to customize its approach for new markets and adjacent segments.

The business is expected to expand rapidly across Africa in the coming years, whilst broadening its vertical presence to further enhance its digital entertainment portfolio.

The total transaction consideration of the deal is $281.5 million (R3,8 billion), which will be debt-funded.

The consideration will be structured as follows:

Mwendo will buy a 21.4% stake in BetKing from partially-exiting minority shareholders for $181.5 million (R1,5 billion), which is at the same valuation as the equity issuance, resulting in MultiChoice’s shareholding in BetKing to increase to 49%.

A BetKing employee share option plan (ESOP) will be created to house 10% equity.

The acquisition of a 9.6% stake in BetKing for $100m by Mwendo as part of an equity raise to fund BetKing’s expansion and medium-term business plan, resulting in MultiChoice’s shareholding in BetKing increasing to 27.6%.

“As a result of the above Transaction, the earn-out from the original 20% investment
transaction concluded in October 2020 will be triggered and a further $31 million (R million) will be payable,” the company inform investors.

“This will require MultiChoice to raise R4.0bn in ZAR-denominated debt, a condition precedent to the transaction.”

Pursuing an adjacency such as sports betting creates a natural extension to the MultiChoice video entertainment platform to further enhance its product set. Well established in Europe and fueled by its legalisation in the USA in 2018, the global sports betting market is currently experiencing a surge in growth, the company said.

According to a recent report by Technavio, it is set to grow by more than USD134bn between 2020 and 2024, representing a CAGR of 10%.

As Africa currently comprises only 2% of global sports betting revenue, it is poised for significant momentum as it begins to play catch up.

“By leveraging its own proprietary technology which allows it to adapt to the unique challenges of each market, BetKing is particularly well-positioned to capture a large share of the African growth opportunity,” MultiChoice said.

“It will also benefit from SuperSport’s strong brand and reach across the continent, as well as MultiChoice’s regional presence and acumen. BetKing will use the proceeds of the capital raise to expand its product set and geographic footprint to more markets on the continent.”


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