Mybet sells stake in Pferdewetten horse betting business due to cash crunch

German online betting operator Mybet has sold its stake in the Pferdewetten.de horseracing business after finding itself in a cash crunch.

This week, Mybet announced that it had sold its majority stake in Pferdewetten.de AG to a collection of individual investors. Mybet declined to specify how much it had raised, but the over 1.8m shares sold would be worth about €10m given their current price.

Mybet says it will deposit a portion of the proceeds with a trustee, as Mybet had used its Pferdewetten stake as collateral for the €5m convertible bond Mybet issued in November. The share sale requires Mybet to make a mandatory tender offer to creditors within 30 days.

Mybet CEO Zeno Osskó said the decision to sell was one “we would have liked to avoid” but the company has yet to receive clearance from Maltese regulators regarding last October’s sale of Mybet’s B2B payments subsidiary C4U-Malta Ltd.