Entain shares jump more than 20% since CEO’s sudden departure
Investor confidence adds more than £1bn to the value of the FTSE 100 operator following Jette Nygaard-Andersen’s exit last week
Entain’s share price has leapt by more than 22% in the five days since Jette Nygaard-Andersen stepped down as CEO with immediate effect on 13 December.
At the time of writing, the stock sits at 994p, its highest since late September, while Entain’s market cap has risen from around £5.1bn before her resignation to £6.3bn, today. However, the firm has still lost 25% of its value since the start of the year.
The Dane’s departure last Wednesday saw an initial early morning spike in the group’s stock from 811p to 851p, before closing out the day at 847p.
Since then, the stock has continued to climb as the market reacted positively, no doubt buoyed by major investor sentiment.
Less than a day after Nygaard-Andersen resigned, US asset management firm Corvex Management swooped for a 4.4% stake in the FTSE 100 firm.
Corvex Management, which is also the largest shareholder in Kindred Group, snapped up some 28 million shares.
The investment company said it was looking to be a “helpful force for change” in discussion with Entain chair Barry Gibson and interim CEO Stella David in the coming weeks.
David, a former chief marketing officer for Bacardi, has been appointed in the interim to fill the gap left by Nygaard-Anderson until a permanent successor is found.
The non-executive director has been replaced by Pierre Bouchut, a French national with extensive experience of CEO and CFO roles at major companies.
Additionally, Virginia McDowell has been named chair of the remuneration committee, and Rahul Welde has stepped up to join the people and governance committee.
Gibson said: “On behalf of the board, I am delighted that Pierre has agreed to take on the role of senior independent director to replace Stella.
“His extensive board experience and knowledge of the company makes him ideally placed for the role of senior independent director. I am also grateful to Virginia and Rahul that they have agreed to take on these additional responsibilities.”