Entain Begins Phased Exit from Central and Eastern Europe

Entain has entered into an agreement to sell a 20 percent interest in Entain Holdings (CEE) to its joint venture partner EMMA Capital for €425 million. This transaction marks a decisive first step towards Entain's full exit from its Central and Eastern European operations, aligning with the group's strategy to maximize shareholder value.

Key Takeaways

• Entain has agreed to divest a 20 percent stake in Entain Holdings (CEE) to EMMA Capital.
• The transaction is valued at €425 million, facilitating Entain's phased exit from the region.
• Entain CEE encompasses operating businesses STS in Poland new casino market and SuperSport in Croatia.

Corporate Transaction Details

Upon completion of the transaction, Entain's shareholding in Entain CEE will decrease from 67.5 percent to 47.5 percent. Concurrently, EMMA Capital's shareholding will increase from 22.5 percent to 42.5 percent, while the Juroszek family foundations will maintain their existing 10 percent shareholding. Entain CEE's operating businesses, STS in Poland and SuperSport in Croatia casino launches, collectively delivered FY25 revenues of £522 million and EBITDA of £184 million.

Strategic Rationale and Control

Entain stated that the move is aligned with its priority to maximize shareholder value, with the board opting to pursue an exit from Entain CEE to unlock value created within its portfolio. Following the transaction, EMMA Capital, alongside MJ Foundation Fundacja Rodzinna and Fundacja Zbigniewa Juroszka Fundacja Rodzinna, will enter a separate voting agreement. This arrangement will grant EMMA full voting rights attached to the Juroszek family's shares, effectively giving EMMA majority control of the Entain CEE joint venture upon completion.

Executive Commentary

Stella David, CEO of Entain, commented on the strategic importance of the divestment:

“Our initial divestment is a decisive first step towards Entain fully exiting Entain CEE and reflects our ongoing focus on maximising value for shareholders. This enables us to unlock the value created by our Croatian and Polish businesses’ and demonstrates our robust capital allocation discipline.”

Sources: Entain begins phased exit from central and Eastern Europe