Entain Share Discussion Threads

[loganair] 08/4/2024 09:21

The assets of Entain Plc are being closely circled by private equity giants, with a view to plunder the FTSE100 gambling group under its strategic review.

Riding high on a peak share price of £22 and empowered by 20 quarters of double-digit growth, in 2020 and 2021, Gibson rejected two consecutive approaches made by MGM, each above £7bn, to acquire Entain.

At the time, Gibson’s spurning of MGM’s overtures seemed inspired; however, fast-forward to today and “Entain is a shadow of its former self. A rout of the company’s shares has left them worth less than £8.”

Gibson departs Entain having settled a £600m fine with HMRC and the Crown Prosecution Service (CPS) to conclude the investigation into its former Turkish subsidiary operated by GVC Holdings.

Gibson’s tenure as chairman saw the company’s leadership team, led by former CEO Jette Nygaard-Andersen, prioritise growth within regulated markets, moving away from the high-risk ‘grey market’ strategy pursued by GVC Holdings.

As noted, “the duo spent more than £2bn on 11 acquisitions, from Eastern Europe to Canada, in the years that followed” – an M&A strategy that expanded Entain’s gambling portfolio to 35 brands.

Booking corporate losses of £900M, the board of Entain has established a Capital Allocation Committee (CAC) to evaluate the FTSE100 firm’s brand portfolio, corporate funding, and operating structures.

Pressure mounts on the CAC team to price up assets, as PE vultures circle a bruised and bloodied FTSE firm which could trigger a fire sale of brands such as Coral, Sportingbet, Bwin, and Party Gaming.

Apollo and CVC Capital, the private equity firms in question, boast a distinguished history of fruitful investments in the gambling sector, having successfully restructured and then divested companies including Lottomatica, GameNet, Sky Bet, Sisal, and OddsChecker.

[tyroneshares] 08/4/2024 09:18

I do hope there's a bid which develops into a war, otherwise we'll have years before any recovery. Starting point £12.30? "STS" Placement price?Many employees were well behind all of the previous bid offers and probably drove a lot of the internal hatred for puppet blonde when rejected.

[deanowls] 08/4/2024 09:05

Tbf most on here we’re saying to reject it.

[loganair] 07/4/2024 13:12

So often CEO's reject bids saying the company is worth far more then only to see the share price fall dramatically. Meanwhile a few years later to either go bust or accept a bid at a far, far lower price.

[italianofacile] 07/4/2024 13:10

Turned down actually 0.6 of am mgm share which will soon be 50 dollars a share.. And if MGM had owned all of Betmgm and looked after the Entain acquisition they'd be nearer 55 /60 dollars.. Clearly MGM are still very much in the picture it's going to be akin to William Hill, Ceasers pincer

[base7] 07/4/2024 12:11

Having rejected a bis of £28 in 21 & £13.50 in 20 Barry will be lucky to be offered £13 right now -appalling decision making & he & his previous ceo have damaged a fantastic company & most of us long termers would be glad for an honourable exit & the opportunity tovredeploy our cash elsewhere

[demo trader] 07/4/2024 11:38

Stella, CEO, .....Bought a lot on 11th March, 130k and 65k, shares not in value !

[loganair] 07/4/2024 11:37

Entain PLC is considering its options for a number of assets, as the Ladbrokes owner undergoes a strategic probe, The Sunday Times reported.

The newspaper, citing sources, also reported that Entain could name its next chief executive at "any time in the coming days and weeks".

The bookmaker has called on investment bank Moelis to help with a review of its brands. It also owns Coral, Sportingbet and Bwin. The future of "a whole range" of assets are under consideration, The Sunday Times reported, citing sources.

The Sunday Times reported that a number of buyout firms, including the likes of Apollo Global Management Inc and CVC Capital Partners, are watching on with interest. The latter already has a hand in the gambling market, as it owns German bookmaker Tipico.

Entain on Thursday had said that Chair Barry Gibson has chosen to step down from his position by the end of September, having served in the role since February 2020.

Stella David, interim CEO of Entain since December, will replace Gibson as chair following his departure.

The Sunday Times said the departure of Gibson, who had been key in Entain fending off a takeover tilt from US joint-venture partner MGM Resorts International, could leave it "vulnerable" to more M&A interest.

Gibson may step down earlier than September, Entain said on Thursday, depending on the timing and appointment of a new CEO.

Entain said that the search for a permanent CEO, following the departure of Nygaard-Andersen in December, is "ongoing and is progressing well".

Nygaard-Andersen's departure came after the company agreed to pay GBP585 million to HMRC to settle an investigation concerning alleged bribery at its Turkish businesses between 2011 and 2017.

[suetballs] 07/4/2024 11:24

This new ceo better be made of stern stuff - or we get screwed.
Suet

[bargainsniper] 07/4/2024 11:20

Apollo wants to make a fat profit by breaking up a business that took KA year's to build

[bargainsniper] 07/4/2024 11:09

HB 'skinning the cat'

[bargainsniper] 07/4/2024 11:07

So share price is on it's knees meanwhile betmgm is now Ebitda postive after 5 years of our investment. US APOLLO sees an opportunity to make a wad of money by purchasing the business, maybe at a higher price which was considered low only last year, then facilitating a break up. We have a US activist on board who would no doubt help the whole proceedings handing our 50% of the JV to Hornbuckle. If we want to break up the company and sell off its parts then we could do it ourselves and not allow Apollo to make a huge profit for themselves.Terrible.

[bargainsniper] 07/4/2024 10:46

Apollo mulls breakup bid after casino capitalism at Ladbrokes owner EntainThe gambling giant resisted two bids and then rode high, before a scandal brought it crashing back to earth. Now, amid board upheaval, another bid may beckonHttps://www.thetimes.co.uk/article/apollo-mulls-breakup-bid-after-casino-capitalism-at-ladbrokes-owner-entain-mv0gvhvgr

[value viper] 07/4/2024 09:23

Hhhmm - not exactly all over the press is it Any of us could have said a PE company might be mulling a bid as I did 3 weeks ago on this thread !Directors buying is fine I would say Company is in shambles state and any approach could plausibly have come at any time accordingly

[loganair] 07/4/2024 08:47

If this turns out to be true, I wonder how much the directors who bought £100,000s worth of shares over the past few months knew about all this?

[italianofacile] 07/4/2024 07:39

Apollo mulls bid for Entain.. ST

[italianofacile] 04/4/2024 19:30

BH made a favourable remark regarding Stella in MGM update... Actually referring to her on first name terms, something I never picked up on before with regards Ex CEO.. MGM should use the opportunity to at the very least pick up Betmgm.. Maybe they need to digest Entain and spit out the entrails.. MGM are holding all the cards a complete reversal . A stitch up is on the way unless...

[tyroneshares] 04/4/2024 17:40

Let's not forget how much Stella David and Rob Wood were recently awarded in Shares. Damn right, they should be making purchases. It should be a condition of the job role.I'd personally like to see Wood pushed out by the next CEO for his part over the last few years and to clean the board some more.

[suetballs] 04/4/2024 12:29

base7 - I had forgotten about Stella's share purchase.
Good for her.
Suet

[base7] 04/4/2024 11:57

We are all agreed that Barry retiring is a positive & Stella moving up to Chairman looks good to me as she knows the company,warts & all, & recently invested a substantial amount in our shares,suggesting that she considers us to be substantially undervalued.I agree that the new CEO appointment must be very close & lets hope he/she is viewed positively by the Market & our share price starts the long overdue recovery accordingly.

[badger8888] 04/4/2024 11:56

Market seems to like this morning's news. Will the share price break 8?