A group of gambling industry veterans is pushing for changes at 888 Holdings Plc, the owner of British betting chain William Hill, in a bid to boost the bookmaker’s value.
(Bloomberg) — A group of gambling industry veterans is pushing for changes at 888 Holdings Plc, the owner of British betting chain William Hill, in a bid to boost the bookmaker’s value.
The consortium has built a 6.6% stake in London-listed 888, according to a regulatory filing Tuesday that confirmed an earlier Bloomberg News report. The group includes Lee Feldman, the former chairman of betting firm GVC Holdings Plc, which is now known as Entain Plc.
“We think these are great assets that are currently undervalued,” Feldman said by phone Tuesday, declining to comment further. Shares in 888 closed up 14% in London on Tuesday, giving the company a market capitalization of £359 million ($446 million).
Feldman has teamed up with other Entain alumni including two of its former chief executive officers, Kenny Alexander and Shay Segev, according to the filing. They’re joined by Stephen Morana, who was previously an Entain director, as well as B. Riley Financial Inc. and its chief investment officer Daniel Shribman.
The group has already contacted 888 with proposals to boost the company’s value, people familiar with the matter said earlier. These could include leadership and strategy changes, they said, asking not to be identified discussing confidential information.
888’s market capitalization has plunged from a peak of about £1.8 billion in 2021 after its debt-fueled takeover of rival bookmaker William Hill’s assets outside the US. Concerns mounted over its borrowings after interest rates spiked, with net debt totaling 5.6 times earnings at the end of last year. That’s also crimped the group’s ability to invest in growth.
A spokesperson for 888 said the company welcomes the investment, which “we believe reflects the significant value creation potential in our business.”
“The board remains highly confident in its long-term strategy to maximize value for shareholders,” it said in an emailed statement Tuesday. “We look forward to updating and engaging with all our shareholders as we continue to deliver against our clear strategic and operational priorities.”
Chief Executive Officer Itai Pazner stepped down from his post at 888 in January amid a probe into whether some of the gambling group’s VIP accounts violated money-laundering policies. In March, its William Hill unit said it would pay £19.2 million to settle social responsibility and money laundering failures. These included customers being allowed to gamble with one group business after self-exclusion from a sister business.
–With assistance from Thomas Seal.
(Updates with 888 statement in seventh paragraph.)
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