{"id":2088,"date":"2023-06-20T14:27:29","date_gmt":"2023-06-20T13:27:29","guid":{"rendered":"https:\/\/sbceurasia.com\/en\/?p=2088"},"modified":"2023-06-20T14:27:30","modified_gmt":"2023-06-20T13:27:30","slug":"eminence-capital-criticizes-entain-and-sts-group-deal","status":"publish","type":"post","link":"https:\/\/sbceurasia.com\/en\/2023\/06\/20\/eminence-capital-criticizes-entain-and-sts-group-deal\/","title":{"rendered":"Eminence Capital Criticizes Entain And STS Group Deal"},"content":{"rendered":"\n

Eminence Capital<\/strong> investment fund is questioning the M&A strategy of the FTSE100<\/strong> gaming group Entain Plc<\/strong>, pointing to a negative impact on the company’s value and its long-term prospects.<\/p>\n\n\n\n

A public letter written by Eminence CEO Ricky Sandler<\/strong> criticized Entain’s management for its decision to spend \u00a3600m to buy STS Group by issuing new shares, more than about 8% of the company’s market capitalization.<\/p>\n\n\n\n

Sandler describes Eminence Capital as a strategic long-term investor in Entain, having purchased 13.2 million shares since 2020, roughly 2.1% of Entain Plc’s total shares. <\/p>\n\n\n\n

Eminence Capital claims two of Entain’s most valuable assets \u2014 its expanding international online sports betting and gaming platform and its 50% stake in the BetMGM joint venture in North America \u2014 have been undervalued in Entain’s ongoing M&A strategy.<\/p>\n\n\n\n

The wealth management group is of the opinion that investors should be concerned about financing M&A deals with heavily undervalued capital, which is considered a value-destroying strategy. In addition, Entain’s management and corporate governance are being accused of empire building. <\/p>\n\n\n\n

The letter also notes apparent controversy from Entain’s management, as they had previously rejected takeover bids due to the low price, but have now decided to issue the shares at a significantly lower price.<\/p>\n\n\n\n

The fund noted that the market reacted negatively to the deal, as Entain’s share price fell by more than 8%. This resulted in a loss of market value of over \u00a3650 million, nearly equal to the price paid for the acquisition of STS Group.
Don’t forget to subscribe to our Telegram channel<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

Eminence Capital investment fund is questioning the M&A strategy of the FTSE100 gaming group Entain Plc, pointing to a negative impact on the company’s value and its long-term prospects. A public letter written by Eminence CEO Ricky Sandler criticized Entain’s management for its decision to spend \u00a3600m to buy STS Group by issuing new shares, […]<\/p>\n","protected":false},"author":6,"featured_media":2089,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[1],"tags":[3887,381,3885,329,324,2784,2365,3847,563,3886,2842,1559,2299],"class_list":["post-2088","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-acquisitions","tag-business","tag-corporate-transactions","tag-emma-capital","tag-entain","tag-finance","tag-investments","tag-investors","tag-market","tag-mergers","tag-shares","tag-strategy","tag-sts-group"],"yoast_head":"\nEminence Capital Criticizes Entain And STS Group Deal - SBC EURASIA EN<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sbceurasia.com\/en\/2023\/06\/20\/eminence-capital-criticizes-entain-and-sts-group-deal\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Eminence Capital Criticizes Entain And STS Group Deal - SBC EURASIA EN\" \/>\n<meta property=\"og:description\" content=\"Eminence Capital investment fund is questioning the M&A strategy of the FTSE100 gaming group Entain Plc, pointing to a negative impact on the company’s value and its long-term prospects. A public letter written by Eminence CEO Ricky Sandler criticized Entain’s management for its decision to spend \u00a3600m to buy STS Group by issuing new shares, […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/sbceurasia.com\/en\/2023\/06\/20\/eminence-capital-criticizes-entain-and-sts-group-deal\/\" \/>\n<meta property=\"og:site_name\" content=\"SBC EURASIA EN\" \/>\n<meta property=\"article:published_time\" content=\"2023-06-20T13:27:29+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-06-20T13:27:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/resourcesen.sbceurasia.com\/sbccisen\/sites\/2\/2023\/06\/Eminence-Capital-Criticizes-Entain-And-STS-Group-Deal.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"660\" \/>\n\t<meta property=\"og:image:height\" content=\"330\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ana Kobakhidze\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ana Kobakhidze\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/sbceurasia.com\/en\/2023\/06\/20\/eminence-capital-criticizes-entain-and-sts-group-deal\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/sbceurasia.com\/en\/2023\/06\/20\/eminence-capital-criticizes-entain-and-sts-group-deal\/\"},\"author\":{\"name\":\"Ana Kobakhidze\",\"@id\":\"https:\/\/sbceurasia.com\/en\/#\/schema\/person\/1444eb87c339a10fb03044577ed751a7\"},\"headline\":\"Eminence Capital Criticizes Entain And STS Group Deal\",\"datePublished\":\"2023-06-20T13:27:29+00:00\",\"dateModified\":\"2023-06-20T13:27:30+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/sbceurasia.com\/en\/2023\/06\/20\/eminence-capital-criticizes-entain-and-sts-group-deal\/\"},\"wordCount\":272,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/sbceurasia.com\/en\/2023\/06\/20\/eminence-capital-criticizes-entain-and-sts-group-deal\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/resourcesen.sbceurasia.com\/sbccisen\/sites\/2\/2023\/06\/Eminence-Capital-Criticizes-Entain-And-STS-Group-Deal.jpg\",\"keywords\":[\"acquisitions\",\"business\",\"corporate transactions\",\"EMMA Capital\",\"Entain\",\"finance\",\"investments\",\"investors\",\"market\",\"mergers\",\"shares\",\"strategy\",\"STS Group\"],\"articleSection\":[\"News\"],\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/sbceurasia.com\/en\/2023\/06\/20\/eminence-capital-criticizes-entain-and-sts-group-deal\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/sbceurasia.com\/en\/2023\/06\/20\/eminence-capital-criticizes-entain-and-sts-group-deal\/\",\"url\":\"https:\/\/sbceurasia.com\/en\/2023\/06\/20\/eminence-capital-criticizes-entain-and-sts-group-deal\/\",\"name\":\"Eminence Capital Criticizes Entain And STS Group Deal - 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