Entain CEO quits in the midst of £8 billion takeover battle with MGM
Shay Segev has quit his position as CEO of Entain, looking for a role with higher financial rewards at DAZN sports streaming site, regardless of the £8 billion takeover battle with MGM that is currently underway.
The ongoing £8 billion takeover battle between MGM and Entain took a turn for the worst after Entain’s CEO Shay Segev quit. MGM has reportedly made an all-shares offer, which Entain (formerly known as GVC) has completely rejected, expressing that the company is being severely undervalued. One of Entain’s largest shareholders considered that the £8.1bn proposed takeover by MGM Resorts is “not in the right postcode”.
Moreover, the third largest investor in Entain – Aberdeen Standard, who specialise in investments and global asset management – suppose that Entain is being undervalued by “billions of pounds”, according to the Sunday Telegraph.
Investment Director at Aberdeen Standard Wes McCoy stated: “If you are going to buy this company from my fund holders, the conversation is going to have to start with: “This is a great company, now let’s talk. This offer is not in the right zip code or postcode.”
In reference to the rejected proposal by the Entain board, claiming the offer was too low, he commented: “The US is going to be the biggest market in the world – the biggest regulated market in the world.”
In other news, MGM China, the MGM Resorts Chinese subsidiary, told investors that the company has no plans to restructure ownership after an open letter from their biggest stakeholder Snow Lake Capital advised MGM to sell a percentage of its MGM China stake.
Furthermore, skepticism around Segev’s departure has increased considering the bizarre timing.
Entain chairman commented on this news saying: “We are sorry that Shay has decided to leave us but recognise that we cannot match the rewards that he has been promised.”
He also assured that the CEO’s departure won’t impact the takeover bid, which “significantly undervalues the company and its prospects”.