888 Holdings Loses Backer as FS Gaming Reduces Stake

Article by : Erik Gibbs Aug 23, 2023

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FS Gaming announced a reduction in its commitment to 888 Holdings, which affects the brands’ new official arrangement to partner up. Shay Segev, the former CEO of Entain, has opted to have FS Gaming Investments reduce their voting rights arrangement.

888 Holdings released the official announcement. The deal was terminated due to FS Gaming’s refusal to appoint former Entain executives to take charge of high positions in 888 Holdings.
Three former executives of Entain, formerly known as GVC Holding, own the fund FS Gaming Investments. The ownership is shared by Kenny Alexander, Lee Feldman and Stephen Morana.

According to the most recent filing unveiled by 888 Holdings, Segev, who formerly served as Alexander’s successor at Entain/GVC, he submitted an official withdrawal from the agreement with the fund over his voting rights.

The impact on FS Gaming Investments now translates into the withdrawal of voting rights, which account for 9,063,313 ordinary shares in 888 Holdings. These shares are priced at 0.0064 each.
FS Gaming Investments will keep a 4.55% investment in 888 after the terms of the agreement are terminated. Still, voting power will also be automatically diminished due to Segev’s last-minute withdrawal.

In reality, one of the main factors that drove the terms of the deal to break was FS Gaming’s refusal to have former Entain executives take charge of similar rules at 888 Holdings. For instance, Feldman and Morana both applied for the positions of chair and CFO at the casino holding company. Kenny Alexander applied also applied for the CEO position.

Given GVC Holdings’ alleged unethical background and prior commercial dealings in Turkey, the application to consider the proposed executive list was shut down. The company, known as Entain, will seek an arrangement with HMRC and cover fines if these apply.

Entain had commented that they hold almost $750 million as a budget for any potential regulatory issue resolution. The company paid $945 million earlier this year to acquire the Polish-based betting firm STS Holding.

Despite criticism that the acquisition would hurt one of the world’s largest gambling enterprises, Entain refused to display anything but excitement about the deal. Experts have criticized Entain in an open letter for proceeding with the transaction.

To experts, it was clear that the move would negatively impact the company’s position. According to the investment firm, the decision will impact the share price and could affect the company’s financial strength.

This was a follow-up purchase to Entain’s $150-million acquisition of the international sports media firm 365scores. Entain continues to expand, yet most experts believe this strategy will have unmeasured impacts. The company’s finances have continued to grow despite these announcements, according to recent reports.