Entain appoints Eminence Capital founder Ricky Sandler to board

(Sharecast News) - Ladbrokes owner Entain rallied on Wednesday as it announced the appointment of Eminence Capital founder Ricky Sandler as a non-executive director with immediate effect. Sandler is the founder, chief executive and chief investment officer of Eminence Capital, a global investment management organisation.

Entain said Sandler will also become a member of the company's People & Governance and Capital Allocation committees and they will work together to identify an additional non-executive director mutually agreeable to Eminence and the company.

Chairman Barry Gibson said: "I am pleased to welcome Ricky to the Board of Entain. Ricky has a deep knowledge of our business and a firm belief in the quality of our operations and substantial growth opportunities. We look forward to benefiting from his perspectives and expertise as we work to drive value for all Entain shareholders."

At 0925 GMT, the shares were up 1.5% at 1,000.40p.

Russ Mould, investment director at AJ Bell, said: "Gambling outfit Entain moved higher on news the Ladbrokes owner had appointed a director from one of its four new activist shareholders.

"After the departure of CEO Jette Nygaard-Andersen in December, the company needs to find some direction. At least last year's conclusion of a HMRC probe into a legacy business in Turkey provides the company with something of a clean slate from which to try and get earnings on an upwards trajectory."

Victoria Scholar, head of investment at Interactive Investor, said: "Last summer, Sandler, an activist investor, criticised the then CEO Jette Nygaard-Andersen who then stepped down from the role in December.

"Sander's appointment could pave the way for a divestment of its state in US betting joint venture BetMGM, something he previously suggested. His role could also help to appease other activist investors who were unsure of Nygaard-Andersen. She was criticised for her handling of the takeover of STS Holdings, Poland's largest bookmaker and her leadership has been clouded by a Turkish bribery scandal.

"Since becoming CEO in 2021, Entain's share price has struggled, another reason for her departure and the need for new voices on the board to help mastermind a turnaround. Over the past year alone, shares are down over 25%.

"Investors are cheering the appointment of Sandler as NED this morning, encouraged by the change in direction. According to Entain, he will also be involved in appointing another board director."