FS Gaming's 888 stake drops to 4.5% as deal with ex-Entain CEO cancelled
Investment vehicle confirms termination of voting rights loan agreement with Shay Segev after failure to install former GVC trio into top jobs
FS Gaming has terminated an agreement with former Entain CEO Shay Segev which saw him loan more than nine million shares to the investment firm.
FS Gaming confirmed it has now reduced its holding in 888 to 4.55% from a previous position of 6.57%.
Segev had transferred his voting rights, totalling 9,063,313 ordinary shares, to the US-based firm in June.
FS Gaming partnered with Segev as it looked to install former GVC trio Kenny Alexander, Lee Feldman and Steven Morana into executive positions at 888.
However, that move failed to materialise after 888 called off discussions when the Gambling Commission (GC) raised concerns over GVC’s historical Turkish operations.
Entain (then GVC) is currently under investigation by HMRC over offences relating to section 7 of the Bribery Act 2010.
The GC had implored 888 to seek clarification from FS Gaming, with the former GVC trio all in situ at the time of the alleged failings.
888 said the “most basic assurances that addressed these concerns were not forthcoming” from FS Gaming.
The London-listed firm proceeded to terminate discussions with FS Gaming after it realised that it could put the group’s UK licence at “immediate and significant risk”.
The GC had noted that any shareholder that acquires a stake of more than 10% would trigger a change of corporate control.
After ending discussions with FS Gaming, 888 confirmed the appointment of ex-Fortuna Entertainment Group boss Per Widerström as its new CEO.
Widerström is set to join the company in October.