Entain CEO Jette Nygaard-Andersen is leaving with immediate effect in a decision the company says is related to the investigation into its legacy Turkish business.
Entain last week signed off a £585m Deferred Prosecution Agreement with the UK’s Crown Prosecution Service over alleged bribery offences relating to the Turkish business that was sold by GVC Holdings, the company which preceded Entain.
Nygaard-Andersen said the conclusion of the HMRC investigation offers her and the group a “clean inflection point” adding she feels it is “the right time” to move on after taking over in 2021.
Entain chairman Barry Gibson said that the consequences for Entain would have been “disproportionate” had the matter not been resolved through a DPA and that the investigation posed “a number of threats” to the group.
Stella David, currently a non-executive director, will become Entain's new CEO on an interim basis, starting this week and remaining in the role until a permanent replacement for Nygaard-Andersen is found.
Reports warn of Entain investor concern
UK newspapers The Sunday Times and The Financial Times in recent weeks have reported in recent weeks that Nygaard-Andersen was facing pressure from activist investors over her M&A strategy since taking over.
One key Entain backer, Eminence Capital, was indeed outspoken after the group’s £750m purchase of Polish operator STS.
And the reports have said activist investors have kept up the pressure on Nygaard-Andersen.
A recent Financial Times report heard from more than 20 sources, who noted concern about the value of 11 bolt-on acquisitions completed at a total price of £2bn since Nygaard-Andersen took over.
One institutional investor described a “headlong rush into non-stop M&A” despite the struggles of Entain’s core business, noting a lack of awareness and general understanding of the economics of the business and shareholder sentiment.
