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Entain gives board seat to activist investor Eminence to help appoint new directors

Published 03/01/2024, 07:38
Updated 03/01/2024, 08:10
© Reuters Entain gives board seat to activist investor Eminence to help appoint new directors
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Proactive Investors - Ladbrokes and Sportingbet owner Entain PLC (LON:ENT) has appointed a director from one of the four activist funds that have built up stakes in it.

The blue-chip bookmaker, which had a tumultuous 2023 that ended with the departure of its chief executive, has appointed Ricky Sandler, founder and boss of New York hedge fund Eminence Capital, as a non-executive director with immediate effect.

Sandler is being made a member of the FTSE 100 company's capital allocation committee and its people & governance committee, with the latter allowing him to work on identifying an additional non-executive director "mutually agreeable to Eminence and the company", it said.

Chairman Barry Gibson hailed Sandler's "deep knowledge of our business and a firm belief in the quality of our operations and substantial growth opportunities".

Sandler said: "Entain is a robust business with market-leading brands, a unique technology platform, and enviable positions in key geographies around the world. I look forward to working with my fellow directors to help Entain achieve long-term success and create lasting value for its shareholders."

Eminence along with other activist investors Sachem Head Capital Management, Dendur Capital and Corvex are pushing to take board seats with the aim of controlling the hiring process for the new chief executive and any future mergers and acquisitions, according to an FT report last month.

Entain said in its statement that it has entered into a "relationship agreement" with Eminence and Sandler, which includes "customary governance, standstill and voting provisions" and has been made available on the group's website.

Read more on Proactive Investors UK

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