(Alliance News) - 888 Holdings PLC shares surged on Wednesday after it received backing from a vehicle which includes several former board members of Entain PLC.
FS Gaming Investments LLC has built a 6.6% stake in the gambling firm 888, according to a regulatory filing issued on Tuesday.
A spokesperson of 888 told Alliance News on Wednesday: "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."
FS Investments is backed by Kenny Alexander, Lee Feldman and Shay Segev. Alexander was formerly chief executive of GVC Holdings PLC, the Ladbrokes and Coral owner now known as Entain PLC. Alexander was replaced by Segev, who then stepped down as CEO in January 2021 to head up sports streaming platform DAZN.
Feldman was formerly chair of GVC, departing in February 2020.
888 shares were 20% higher at 95.71 pence each in London on Wednesday morning. The stock is down some 53% over the past 12 months, however.
888's stock has come under pressure in recent months, amid fears for its debt since acquiring William Hill's non-US business in July of last year for an enterprise value of GBP1.95 billion.
More recently, the company in January said its chief executive left the company suddenly. The departure of Itai Pazner came just two weeks after the company announced Yariv Dafna would step down as chief financial officer. However, 888 in January said its CFO would stick around a little longer until the end of 2023.
Also in January, 888 announced it has suspended VIP activities in the Middle East region ahead of the "outcome of an internal compliance investigation".
Following an initial review, 888 said some of its units in the Middle East region have fallen short in know your client and anti-money laundering compliance measures. 888 said it currently believes the issues are "isolated to this region only".
In March, it was announced that three gambling businesses owned by 888's William Hill will pay a total of GBP19.2 million for "widespread and alarming" social responsibility and anti-money laundering failures.
It was the largest settlement in UK Gambling Commission's history. WHG (International) Ltd, which runs williamhill.com, will pay GBP12.5 million; Mr Green Ltd, which runs mrgreen.com, will pay GBP3.7 million; and William Hill Organisation Ltd, which operates 1,344 gambling premises across Britain, will pay GBP3 million.
By Eric Cunha, Alliance News news editor
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