Entain adds Eminence Capital boss to operator’s board
Ricky Sandler joins as non-executive director despite statement last summer slamming Entain as “tone deaf” over its acquisition of STS
Entain has installed Eminence Capital CEO Ricky Sandler to the board as a non-executive director with immediate effect.
Sandler’s appointment comes following a vocal outburst in the summer from Eminence Capital in which the New York-based investment firm said it was “outraged” by Entain’s decision to acquire Polish market leader STS Gaming Group for £750m.
Eminence Capital, which holds around 13 million shares in the FTSE 100 firm, equal to a 2.1% stake, added that Entain had been “tone deaf” in its approach for STS.
The statement, which was released in June, also suggested that should shareholders “lose confidence” in Entain, they would back a sale of the company to MGM Resorts International.
MGM Resorts tabled a bid of £8.1bn for Entain back in January 2021 but saw that offer rejected as it was deemed to undervalue Entain.
Since then, Entain’s market cap has fallen to £6.4bn, at the time of writing. However, shares are up 2.2% on the back of Sandler’s appointment.
The addition of Sandler to the board marks a significant shift for Entain following the resignation of CEO Jette Nygaard-Andersen last month.
The Dane had been facing intense activist investor pressure over the group’s performance and M&A strategy, with non-executive director Stella David having been drafted in to lead the business in the interim.
In addition to Sandler’s appointment, he will also become a member of the firm’s People and Governance and Capital Allocation committees.
In his role, Sandler will also be able to work with Entain to add a “mutually agreeable” non-executive director to the board.
On his appointment, 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,” he added.
Entain chair Barry Gibson praised Sandler’s knowledge and experience. He 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.”