Codere SA Deny To Sell 51% Stake To Novomatic

Codere SA has denied Spanish news claims that it has entered into talks with the Austrian conglomerate Novomatic to sell a majority stake of 51 percent of its online gambling unit.

A news article published by El Confidencial Tuesday morning was immediately debunked by the Bolsa Madrid-registered gambling group in which it was revealed that the company was evaluating a strategic bid put forward by Novomatic to become the majority owner of its online gambling division.

Codere claims that the article of El Confidencial was misinformed, as the Spanish operator continues to look for strategic partners to expand its online business in new territories.

Codere claimed that it would not attempt to sell a majority stake in its online business under any conditions, while any partner or investor would have to consider a minority position in the company.

Important growth

In addition, Codere underlined the important growth prospects of its online operations in new markets in South America, such as Colombia and Mexico.

In its Q3 trading update last November, Codere announced that the company was monitoring year-to-date losses of EUR 240 million, as the COVID pandemic had affected all commercial units.

In 2020, after securing a credit line of EUR 250 million made available by its current investors, Codere kept all its business units afloat.

On Friday 26 February, Codere will report its full-year results for 2020.