Eastern European based private equity fund Penta Investments, is considering the sale of its gambling asset, Fortuna Entertainment Group (FEG).
The news, initially reported by Reuters, suggests that Penta is open to offers for the acquisition of Fortuna Entertainment. The private equity fund, led by Czech moguls Jaroslav Hascak and Marek Dospiva, is rumuored to be seeking a sale price of 2 billion for Fortuna Entertainment. This information comes from an anonymous source with knowledge of the companys operations. FEG is recognized as the leading betting firm in the Czech Republic and Slovakia, making it a significant player in the regions gambling industry.
Penta Investments took full control of Fortuna Entertainment in 2017, purchasing the firms entire shareholding from the Warsaw Exchange. Before this acquisition, Penta had financed Fortuna Entertainments purchase of the Balkan gambling group, Hattrick Sports Group. This strategic move allowed the Czech betting group to gain control of Romanias Casa Pariurilor and Croatias PSK Sports brands.
According to Reuters, Penta has engaged JPMorgan to explore potential options for the business. Industry insiders believe that Fortuna could command a premium valuation from Western competitors looking to expand into the relatively untapped Central and Eastern European betting markets.
Penta Investments, primarily focused on Eastern European markets and enterprises, boasts a portfolio value of 14.5 billion. Its key assets include the Slovakian retail bank Prima, food processor Caribona, and Czech media group VLM Media.
As of now, neither Penta Investments, Fortuna Entertainment, nor JPMorgan have confirmed the report.
