Decisive first step taken towards fully exiting Entain CEE with initial 20 per cent divestment agreed

Entain has entered into an agreement to sell a 20 per cent stake in its Central and Eastern European betting and gaming business to its joint venture partner EMMA Capital.

Aligned with the group’s priority to maximise shareholder value, Entain’s Board said it had decided to pursue an exit from Entain CEE to unlock the value created within Entain’s “attractive” portfolio.

As part of a phased exit from Entain CEE, Entain will receive a total cash consideration of approximately €425 million for the 20 per cent interest, comprising of €395m payable on completion, plus an additional payment in early 2027 to reflect FY26 financial performance.

The transaction implies an enterprise value for Entain CEE of €2.1 billion and around 10x EBITDA multiple.

Entain CEE consists of the two operating businesses, STS in Poland and SuperSport in Croatia, which delivered FY25 net gaming revenue of £522 million (+7 per cent) and EBITDA of £184 million (+7% per cent).

Net proceeds will be used to reduce Entain’s outstanding debt, with completion expected in Q4 2026, subject to regulatory approvals

Future proceeds from the exit of Entain CEE will be used to reduce group reported leverage below 3x, and excess capital returned to shareholders.

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

“Driven by structural growth across our globally scaled portfolio and our improving operational execution, I am confident in our ability to deliver strong future cash-generation. Entain remains well positioned to be a long-term industry winner.”

Upon completion of the transaction, Entain’s shareholding in Entain CEE will decrease from 67.5 per cent to 47.5 per cent, with EMMA’s share increasing from 22.5 per cent to 42.5 per cent. The Juroszek family foundations maintain their existing 10 per cent shareholding.

Concurrently, EMMA, MJ Foundation Fundacja Rodzinna and Fundacja Zbigniewa Juroszka Fundacja Rodzinna will enter into a separate voting agreement, under which it will grant the Juroszek family a put option over their 10 per cent holding, exercisable in three tranches during the three years following completion. 

Under this voting agreement, the Juroszek family will assign to EMMA the full voting rights attached to their shares, subject to customary exceptions and effective upon completion of the transaction. As such, from completion, EMMA will have majority control of the Entain CEE joint venture.

Following the 20 per cent divestment, Entain CEE will no longer be fully consolidated into Entain’s financial statements. As a minority shareholder, Entain will continue to recognise its share of Entain CEE profits and dividends until such time as a full exit is achieved.

Entain continues to evaluate all strategic options to exit its remaining minority shareholding.

Shares in Entain plc (LSE:ENT) gained 4.00 per cent to 574.60 pence per share in London Thursday following the announcement