Entain’s strategic review continues to unfold as it was revealed that assets of the firm are being closely circled by private equity giants.
According to a report from The Sunday Times, ‘US private equity firms Apollo Global and CVC Capital are pondering a fragmentation of Entain’ as the business ends its era of ‘casino capitalism’.
The news comes after the operator confirmed the departure of Chairman Barry Gibson as the group looks to cement the sale of MGM Resorts.
According to The Sunday Times, Entain will name an incoming chief executive at ‘any time in the coming days and weeks’; however, it noted that staff morale was on the wane following the affairs of a traumatic year.
The board of Entain recently hired ’boutique bank’ Moelis & Company to assist the CAC team in its evaluation of corporate assets, informing investors that ‘all brands are at a crossroads’ except for the ‘US growth child’ BetMGM.
It was confirmed that Moelis will provide guidance on Entain’s capital allocation committee on moving on from brands which have not been integrated into the group’s technology platform, which “makes them easier to sell”, according to those familiar with the situation.
According to the FT report, brands which could be sold include the Netherlands-based BetCity, Ladbrokes in Australia, Sweden-based Enlabs and Georgia-based CrystalBet. The sale of such brands would allow Entain to focus on its core UK and German markets, as well as BetMGM, its joint-venture business with MGM Resorts International in the US.
Moelis isn’t the only advisory firm guiding Entain on the sale of its assets, as earlier this week, it was reported that the group is exploring the sale of its PartyPoker subsidiary and has enlisted Oakvale Capital to fetch the ‘maximum possible value’ for the asset – a targeted £150m sale.
Entain’s capital allocation committee was formed last November to review the group’s markets, brands and verticals “to help focus the organisation, improve competitive positions in core markets and maximise shareholder value”.
