Former GVC bosses take 6% stake in 888 Holdings as stock price soars
Ex-GVC CEOs Shay Segev, Kenny Alexander and former chairman Lee Feldman make share purchase amid reports executives are seeking to spur growth at beleaguered operator
A consortium of former GVC executives has purchased a 6% stake in 888 Holdings, with reports suggesting the group is introducing proposals to revive the underperforming operator.
Details of the purchase were published on 888’s London Stock Exchange site late on Tuesday (6 June) evening, with the group making the purchase through US-based company FS Gaming Investments.
The group is made up of former GVC executives including former chief executive Shay Segev, who is now CEO of DAZN Group, and his predecessor in the role Kenny Alexander, who exited the firm in 2020.
Rounding out the group is former GVC chairman Lee Feldman and ex-GVC director Steven Morana, along with Los Angeles-based capital investment firm B Riley Principal Investments LLC and its chief investment officer Dan Shribman.
888 shares rallied on news of the investment in early trading on the London Stock Exchange, rising 19% to 95.26p per share.
FS Gaming Investments purchased a total of 29,481,349 shares, made up of both direct voting rights shares and indirect voting rights shares, representing a total stake of 6.57%.
In addition to the purchase, the LSE filing reveals that Shay Segev transferred the voting rights of a total number of 9,063,313 ordinary shares of £0.005 each in 888 Holdings plc to FS Gaming Investments, LLC on 4 June.
According to reports by Bloomberg Canada, the group has made the share purchase to bolster its position ahead as it plan to table proposals to take 888 back to financial growth following a significant period of debt increases, poor share performance and management upheaval.
It is understood this could see changes to the current leadership team at the firm, as well as potential strategic pivots, however no further details have been revealed.
“We think these are great assets that are currently undervalued,” Lee Feldman revealed in conversation with Bloomberg over the proposals.
Shares in 888 have fallen sharply over the past year and are down by 53% at the time of writing, with the firm also reporting a 3% drop in group revenue on a pro forma basis for full-year 2022 and double digit declines in both online sports betting and online gaming revenue.
The firm has also lost a number of key executives over the last year, including CEO Itai Pazner who stepped down from his role in January, with a search for his replacement currently underway.
In early 2023, the firm had its VIP operations suspended in the Middle East pending an investigation into its conduct.
In a statement provided to EGR, a spokesperson for 888 said: “We welcome the investment of FS Gaming which we believe reflects the significant value creation potential in our business.
“The board remains highly confident in its long-term strategy to maximise value for shareholders. We look forward to updating and engaging with all our shareholders as we continue to deliver against our clear strategic and operational priorities,” the spokesperson added.