GVC Holdings offloads payments processing unit to pare debts

GVC Holdings has agreed to offload its Kalixa payments processing business for €29m cash that could rise to €35.5m.

Senjō Group of Singapore expects to complete the purchase in during the first quarter of 2017.

FTSE 250-listed GVC said it would use the proceeds to pay down its debts.

Last calendar year Kalixa lost £7m before interest and tax, from sales of €22.7m.

The sale in likely to result in a modest book loss on around €4m in 2017 which it is anticipated will be treated as an exceptional item.

GVC chief executive Kenneth Alexander said: "Post-sale Kalixa will continue to process payments for GVC and our customers, but now with the opportunity to build a larger payment services business under new ownership which has payments as a core activity."