Entain mulls sale of international brands to rescue sinking share price
Ladbrokes owner Entain is mulling the sale of several of its international brands in a bid to streamline its operations and ease investor jitters over its recent acquisition splurge.
The gambling giant has reportedly hired advisers, including Wall Street boutique advisory Moelis, as it considers shredding some of its core overseas brands, according to the Financial Times.
Insiders said the focus of the review is on brands that have not been fully integrated into Entain’s technology platform, making them prime candidates for disposal.
The FTSE 100 stock fell over three per cent on Thursday morning.
Among those said to be up for the chop are BetCity in the Netherlands, Ladbrokes’ offshoot in Australia, Enlabs in Sweden, and CrystalBet in Georgia.
These were bought bought during the three year tenure of former chief Jette Nygaard-Andersen, whose departure last December marked a turning point for Entain, as activist investors called for improvements in the company’s performance. The firm’s shares have plunged over 40 per cent in the past year.
A search for Nygaard-Andersen’s replacement is currently underway.
In its full year earnings, chairman Barry Gibson said Entain’s new capital allocation committee has begun a review of Entain’s markets, brands and verticals.
“The objectives of the review are to help focus the organisation, improve competitive positions and maximise shareholder value,” he explained.
By selling off a number of overseas assets, Entain hopes to revitalise its operations in key markets such as the UK and Germany, where it has been facing challenges in maintaining market share.
On Tuesday, Sky News reported that Entain has also hired advisers from Oakvale Capital for a potential sale of its online poker business, Partypoker, expected to fetch about £150m.
Entain and Moelis declined to comment.