888 shares fall by 6% as Shaked family sells off entire stake
The share price for 888 Holdings dipped by 6% last week, as a trust owned by one of the founders’ families was sold. The family owned a 13% stake in the business which they have sold in full.
The trust in question was The O Shaked Shares Trust and was owned by the family of founder Aharon Shaked, who is deceased. The trust consisted of over 46 million shares which were valued at 243p each. The sale resulted in around £112m for the family who have now sold off their entire stake in the company. The family had also sold off forty million shares in the company earlier in the year. The family of one of the company’s other founders, Avi Shaked, own a 24% stake.
The dip in share price came as a direct result of the sale of the shares. The sale price on Wednesday of 243p was less than the previous day’s share price of 258p, meaning the shares were sold at a discount. This resulted in a decline of 6.1% in the company’s share price, with stock opening the following day at 242p per share.
A turbulent year for 888
The future of 888 Holdings may now be less than certain, but it has also been a turbulent year for the operator.
In September, the firm posted a record loss of $17m for the first half of 2017. This came despite a rise in performance across all 888 Holdings operations. Revenue rose particularly with the sportsbook, 888 Sports, which saw revenue increase 35% on the year.
Despite strong performance, the loss was mostly the result of exceptional costs incurred by the firm. In September, the UK Gambling Commission fined 888 Holdings a record £7.8m for serious failures in its social responsibility processes.
Many analysts are waiting on the H2 performance of the firm after such a turbulent year, but with the Shaked family selling off their entire share in the company, many will now be questioning whether a takeover of 888 Holdings is on the horizon.