Home > Finance > Alexander-backed FS Group takes 6.57% stake in 888

Alexander-backed FS Group takes 6.57% stake in 888

| By Robert Fletcher
FS Group, an investment vehicle backed by former GVC chief executive Kenny Alexander, has taken a 6.57% stake in 888.

Confirmed by 888, FS Group took a 4.55% holding in the group. The remaining 2.02% holding was transferred by Shay Segev, who was Alexander’s successor before GVC’s name change to Entain.

A total of 9,063,313 of 888 ordinary shares priced at £0.005 each were transferred by Segev as part of the agreement. FS Group secured another 20,418,036 to take its total holding to 29,481,349.

Other individuals that also hold memberships interests in FS Group include Lee Feldman, the former chairman of GVC, Stephen Morana, Daniel Shribman and B Riley Principal.

The news comes in what has been a busy year at 888, which began with the announcement that Itai Pazner was to leave his role as chief executive in January.

This came in the wake of the group revealing failings in AML and KYC processes for customers in the Middle East. Non-executive chairman Lord Mendelsohn remains as interim executive chair while search for a permanent replacement continues.

Last July, 888 completed its acquisition of William Hill’s non-US assets from Caesars in a deal worth £1.95bn. Despite taking on £1.70bn in debt as a result of the purchase, 888 was able to perform in line with expectations in the 2022 financial year. 

The business recorded a 74% increase in revenue to £1.24bn, as well as an adjusted EBITDA rise of 82% to £217.9m. However, once the revenue impact of the William Hill acquisition is taken into account, the company saw its organic revenue decline 3% compared to 2021.

Recently, it was also revealed that 888 had reached an agreement to sell its Latvian business to Paf Consulting in a deal worth up to €28.3m.

Subscribe to the iGaming newsletter