Shares in 888 missile soar as ex-Entain and Betfair ex-executives reveal stake in William Hill owner and analysts ponder potential for a takeover bid
- 888 has endured a year of regulatory scrutiny and the departure of its CEO
- The share price has more than halved in the past 12 months
Shares of London-listed 888 Holdings rose as much as 20 percent after it was revealed that a clique of industry executives had taken a stake in the gambling group.
It was revealed late Tuesday that New York-based FS Gaming Investments had built up a 6.6 percent stake in the company, which has endured a tumultuous year that saw its CEO leave following regulatory fines and investigations.
The William-Hill owner’s registration filing revealed that Shay Segev, Kenneth Alexander, Daniel Shribman, Lee Feldman and FS Gaming’s B. Riley Principal Investments all have interests in the deal.
888 stocks are racing ahead after industry executives take a stake in the gambling group
Alexander and Segev are both former CEOs of Ladbrokes and Coral owner Entain, then called GVC, where Feldman served as a board member.
Morana is the former chief financial officer and interim chief executive of Betfair, and was once the chief financial officer of Cazoo.
He helped lead both companies through rapid growth, culminating in an IPO.
888 Holdings shares were up 18.7 percent in morning trading on Wednesday to 95 pence.
It has plummeted more than 50 percent in the past year due to a series of regulatory interventions.
Analysts from Peel Hunt said the group of industry leaders has the potential to “accelerate, catalyze and even drive strategic change” in the troubled business.
In 2022, 888 plummeted to a loss of £115.7m pre-tax due to debts related to the William Hill takeover and total revenue falling as the easing of Covid-19 restrictions meant people were gambling less online.
The group has also been hit by scandals about not putting proper money laundering controls in place and putting necessary checks on new customers, including whether they were at risk of gambling-related harm.
Chief executive Itai Pazner subsequently left 888 after more than two decades with the group, including four years at the top.
Peel Hunt reiterated his 150 pence price target, saying: “This well-informed group of investors could help find a new CEO, accelerate the existing strategy and find new directions for growth.
“An offer is possible and, if it leads to a refinance, has the potential to create value by reducing the burden of debt service costs.”