888 shares surge as investor group including Honeysuckle owner Kenny Alexander reveals stake

Shares in William Hill's owner 888 Holdings leapt by more than 25 per cent on Wednesday morning following news that a group of gambling industry figures including Kenny Alexander has taken a stake in the firm.

New York-based FS Gaming Investments was late on Tuesday revealed to have built up a 6.57 per cent stake in 888 which has suffered a turbulent first half of 2023.

Alexander is the former chief executive of the gambling giant GVC Holdings, now known as Entain, and has become a prominent racehorse owner through the likes of horses such as dual Champion Hurdle winner Honeysuckle.

Other gambling industry figures involved in FS Gaming include former GVC chairman Lee Feldman, Alexander's successor Shay Segev who is now chief executive of sports streaming service DAZN, and Stephen Morana, a former Entain board member and chief financial officer of Betfair.

Morana was also chief financial officer at Cazoo when that company took over sponsorship of the Derby and Oaks at Epsom.

The Financial Times reported the investor group believes 888 is undervalued and is looking for a speedier integration between the company and William Hill, which 888 took over last summer. It may also become the target for a takeover in the longer term.

888 announced the sudden departure of chief executive Itai Pazner in January, while at the same time revealing it had suspended its VIP activities in the Middle East over failures in its anti-money laundering (AML)  processes.

In March William Hill was hit with a record £19.2 million penalty from the Gambling Commission over social responsibility and AML failures that took place before 888 completed its acquisition of the bookmaker last July.

888's share price had also been under pressure due to concerns about the interest rates on the debt it had taken on to buy Hills.

An 888 spokesperson said: "We welcome the investment of FS Gaming which we believe reflects the significant value creation potential in our business.

"The board remains highly confident in its long-term strategy to maximise value for shareholders. We look forward to updating and engaging with all our shareholders as we continue to deliver against our clear strategic and operational priorities."

At close of trading on Wednesday, 888's share price closed up 25.63 per cent at 100.50p.

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