Shares of 888 Holdings dropped by 20% on Friday after the company announced the termination of talks with FS Gaming Investments regarding the appointment of key executives. Lee Feldman, Kenny Alexander, and Stephen Morana were being considered for the positions of chair, chief executive, and chief financial officer respectively.
Share Price Decline
At 1316 GMT, shares were trading at 85.15 pence, down 21.15 pence from the previous session.
Proposal by FS Gaming
The London-listed online betting-and-gaming company, which encompasses the 888 brand along with William Hill, revealed that the proposal from FS Gaming was initiated after the disclosure of its 6.57% stake in the company.
Search for New CEO
888 explained that considering the proposal caused a delay in the search for a new CEO. However, it is now in the final stages of the recruitment process and expects to make an announcement soon.
Business Performance
The company assured that despite these developments, it remains on track to meet market forecasts for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) this year.
According to seven analysts’ forecasts compiled from the company’s website, the adjusted EBITDA consensus for the year ending December 31 is projected to be £351 million ($461.1 million).