GVC tumbles as directors sell off £20m stake in Ladbrokes owner
TOP bosses at bookmaker
cashing in on a £20m stake spooked investors ahead of its exit from the FTSE 100, sending its shares plunging to a two-year low.
Kenny Alexander, the chief executive, and chairman Lee Feldman made £13.7m and £6m, respectively, after ditching the bulk of their stakes in the Ladbrokes owner.
The bosses failed to calm investors after the huge stake sale, insisting they “remain fully committed to GVC” and will not cut their positions further while at the company.
The disposal follows a 38pc slump in GVC’S share price since its record high last summer. The sector has come under pressure amid fears of tightening regulation. Following the crackdown on fixed-odds terminals, the Gambling Commission is also mulling over restrictions on using credit cards for online gambling.
The “unhelpful timing” could mean “investors choose to disregard much of the positive commentary” in Tuesday’s annual results, warned Jefferies.
The market was rattled by Mr Alexander and Mr Feldman dumping three quarters of their stakes each. GVC tumbled 95.5p to 588.5p ahead of its departure from the bluechip index next Friday.
Elsewhere, global stocks suffered their worst week of 2019 after growth worries were stoked by the sharp deterioration in economic indicators in the US and China. Markets were already on the back foot following the collapse in Chinese exports before a sharp slowdown in the US labour market soured the mood.
Royal Dutch Shell and BP both slipped after Norway’s sovereign wealth fund unveiled plans to sell some of its oil stocks, even though as integrated energy stocks they are exempt from the cull. The FTSE 100 index slid 53.24 points to 7,104.31, racking up a third straight week of decline, as global stocks tumbled for a fifth day, their worst run since December’s rout.
Saga suffered its biggest plunge in more than a year on fears that competition will squeeze the over-50s insurer. Jpmorgan warned clients that its margins will come under pressure amid an “unhelpful backdrop”. Its dividend could come under threat if profitability declines further, the bank added, knocking Saga 10.8p to 112p.
Embattled gold producer
Acacia Mining slipped back after another setback at its mines in Tanzania. The company is in a dispute with the East African country’s government and said that it had resolved a leakage of harmful water at its North Mara mine after authorities threatened the miner with closure. Its shares dropped 2.1p to 204.6p. Building materials giant
SIG rallied to an eightmonth high as cost-cutting efforts bolstered its profits. It climbed 10.3p to 132.5p despite telling investors to brace for a decline in its like-for-like sales in early 2019, blaming economic uncertainty in the UK.
On Aim, car replacement specialist Redde dived 31.8p to 105p, a four-year low, after failing to win a contract renewal with an undisclosed large insurer.