Betfair shares dip as Softbank sells last stake

Long standing investor and major shareholder Softbank shed its last tranche of a 10.6 percent holding in Betfair to Deutsche Bank.

The Japanese technology firm became Betfair’s biggest shareholder in April 2006 when it acquired a 23 percent stake in the betting exchange at GBP 13.20 per share effectively valuing the firm at GBP 1.5 Billion at the time .

Softbank sold off 11 million shares at GBP 8.07 per share Monday to Deutsche Bank who then briskly sold the GBP 88.7 million holding on to institutional investors that include Henderson and Kames Capital.

The recently reported GBP 1 Billion take-over bid by private equity group CVC, rejected by CEO Breon Corcoran, was backed by Softbank.

Betair’s shares reacted negatively to the sale, dropping around 4.5 percent by close of markets Monday.