FS Gaming Call Off Voting Rights Agreement with Shay Segev
LISTEN TO THIS ARTICLE:FS Gamings has ended its collaboration with Shay Segev, which saw the DAZN Group CEO transfer voting rights to his shares in 888 Holdings to the venture.
In 888's regulatory filing released on August 21, the firm announced that the parties had agreed to terminate the voting rights deal.
As per the original agreement, Segev had given FS Gaming the voting rights attached to his 9,063,313 ordinary shares of GBP£0.005 each, which amounted to 2.02% of 888's total share capital. This increased the investment vehicle's total shareholding in 888 to 6.5%.
However, with the latest development, FS Gaming's stock in 888 has been reduced to its initial 4.5%. FS functions as the investment entity of Kenneth Alexander and Lee Feldman, who previously held the positions of CEO and Chairman at GVC Holdings before it was rebranded as Entain Plc in 2020.
During Alexander and Feldman's leadership, GVC Holdings orchestrated a game-changing acquisition by taking over Ladbrokes Coral, creating a fresh FTSE100 gaming company.
In 2020, Segev on the role of CEO at GVC and led the rebranding process, becoming the first CEO of Entain. He later stepped aside, making way for Jette Nygaard-Andersen to assume the leadership role of the FTSE100 company.
Failed Bid to Takeover 888
The development follows FS Gaming's unsuccessful attempt to secure leading positions within 888. According to their plan, Lee Feldman, the former chairman of GVC, would resume his role as chairman at the firm, while Kenneth Alexander and former GCV director Stephen Morana will become the CEO and CFO, respectively.
The proposal would have also increased FS Gaming's total shares in 888 beyond the 10% mark that allows the venture to take control of the firm's leadership, necessitating approval from the Gambling Commission.
However, the UKGC was against the leadership takeover due to a current investigation into GVC's past activities in Turkey and allegations of wrongdoing by staff and external suppliers.
The HMRC investigation led the Commission to initiate a license review of 888. The regulatory body stated that it took this step as FS Gaming did not adequately respond to its inquiries regarding previous behavior.
As a result, 888 decided to terminate the mentioned talks with FS concerning its senior management's future.
The reduction of FS's stake in 888 might indicate a further separation between the two companies.
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