Entain appoints activist investor Ricky Sandler to board
Chief executive Jette Nygaard-Andersen announced last month that she would leave the business.
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Your support makes all the difference.Ladbrokes owner Entain has appointed an activist investor to its board who has previously called for the group to sell off some or all of its stake in a major US joint venture.
The business said that Ricky Sandler would sit on its capital allocation committee as well as its people and governance committee.
The company will also work with his outfit, Eminence Capital, to find another director who can sit on Entain’s board.
It is a move which will give some hope for those wanting Entain to change its practices. In a letter to the board in June, Mr Sandler criticised the decision of the betting giant to sell new shares in order to raise money for takeovers.
Entain is a robust business with market-leading brands, a unique technology platform, and enviable positions in key geographies around the world
Entain said last summer that it would buy STS Holding, a Polish sports-betting company, for around £750 million.
To get the cash to do so, it issued new shares, about 8% of the company, something which Mr Sandler said he did not understand.
In June, he said: “This approach is perplexing on many levels. While we can support the company pursuing seemingly rational acquisitions, funding them with highly undervalued equity is an empire building, shareholder value destroying strategy.”
In the last year, Entain shares are down around a quarter, and chief executive Jette Nygaard-Andersen announced last month that she would leave the business.
On Wednesday, chairman Barry Gibson said: “I am pleased to welcome Ricky to the board of Entain.
“Ricky has a deep knowledge of our business and a firm belief in the quality of our operations and substantial growth opportunities.
“We look forward to benefiting from his perspectives and expertise as we work to drive value for all Entain shareholders.”
Mr Sandler said: “Entain is a robust business with market-leading brands, a unique technology platform, and enviable positions in key geographies around the world.
“I look forward to working with my fellow directors to help Entain achieve long-term success and create lasting value for its shareholders.”