Activist wins board seat at Ladbrokes owner

LADBROKES’ owner has appointed a US activist investor to its board following the abrupt exit of its chief executive.

Ricky Sandler, who runs US hedge fund Eminence Capital, will join the board of gambling group Entain, which has been grappling with sluggish performance. The investor controls just under 5pc of Entain.

Mr Sandler has criticised the company’s leadership and urged it to sell off its BETMGM division, a US joint venture with casino group MGM Resorts.

His appointment comes just weeks after the departure of chief executive Jette Nygaard-andersen. Shares in the FTSE 100 group, which also owns bookmaker Coral, fell by more than a third under her leadership.

Investors had questioned a series of takeovers, made even as Entain turned down bid approaches from MGM Resorts and US rival Draftkings.

The company’s stock sank last summer after it agreed to fund a takeover of a Polish betting operator by issuing new shares, triggering a sell-off of its stock.

In June, Mr Sandler said: “While we can support the company pursuing seemingly rational acquisitions, funding them with highly undervalued equity is an empire building, shareholder value-destroying strategy.” He accused the board of being “tone deaf ” to shareholder concerns and said he was “outraged” by the decisions, and “clearly not alone in that sentiment”.

Yesterday, Barry Gibson, chairman of Entain, said: “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.”

Ms Nygaard-andersen ultimately left Entain last month shortly after it agreed to pay more than £585m to settle bribery offences relating to its Turkish business between 2011 and 2017.