Entain's CEO Shay Segev quits, pursuing a role with higher financial rewards at DAZN sports streaming site despite the £8 billion takeover battle with MGM
The ongoing £8 billion takeover battle with MGM and Entain took a left turn as Entain's CEO Shay Segev quits for a higher paying role at DAZN sports. MGM made an all-shares offer which Entain, formerly known as GVC and parent company to Ladbrokes, Bwin, Gala, and Coral to name a few, has amply rejected claiming the company is being undervalued.
Indeed, one of Entain's largest shareholders deemed that the £8.1bn proposed takeover by MGM Resorts is "not in the right postcode".
Furthermore, the third largest investor in Entain - Aberdeen Standard who specialise in investments and global asset management - believe that MGM is undervaluing Entain 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 similar news, MGM China, MGM Resorts Chinese subsidiary, tells investors that the company has no plans to restructure ownership of the company after an open letter from their largest stakeholder Snow Lake Capital advising MGM sells a percentage of its MGM China stake.
Moreover, skepticism surrounding Segev's departure has risen given the odd timing, given his notice period is 6 months.
Entain's chairman commented on the situation stating:
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 affect the takeover bid, which “significantly undervalues the company and its prospects".
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