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Entain PLC on Thursday said it has agreed to sell a 20% interest in Entain Holdings CEE Ltd to its joint venture partner EMMA Capital for around €425 million, as it launched a phased exit from the Central & Eastern Europe unit. The Isle of Man-based sports betting and gaming operator which owns Ladbrokes and Coral said the consideration comprises a €395 million payment on completion, plus an additional payment in early 2027 to reflect performance in financial 2026. The fee implies an enterprise value of €2.1 billion for Entain CEE in total. Entain said net proceeds from the sale will be used to reduce its outstanding debt. Entain said the reduction in debt will provide a £20 million annualised interest saving from debt reduction. The sale will be ‘broadly neutral’ to earnings per share and adjusted cashflow. It expects completion in the fourth quarter of 2026, subject to regulatory approval. ‘Aligned with the group’s priority to maximise shareholder value, the board has concluded to pursue an exit from Entain CEE to unlock the value created within Entain’s attractive portfolio,’ Entain said. Entain said it ‘continues to evaluate all strategic options’ to exit its remaining minority shareholding in the joint venture. Future proceeds will be used to reduce reported leverage below 3x, and excess capital will be returned to shareholders. Entain CEE was formed in 2022 after EMMA sold a 75% stake in Croatian gaming firm SuperSport to Entain. The business also consists of Polish sports betting operator STS. ‘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,’ said Entain Chief Executive Officer Stella David. ‘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.’ Entain CEE delivered earnings before interest, tax, depreciation and amortisation of £184 million in financial 2025, up 7% on-year. Following the 20% 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 added. Entain reiterated its expectations of between 5% and 7% Online net gaming revenue growth in constant currency in financial 2026, on a like-for-like basis. It now sees the financial 2026 Online Ebitda margin between 21% and 22%, down from between 23% and 24% when including Entain CEE. The firm remains ‘comfortable’ with market expectations for underlying Ebitda and said it is on track to generate around £500 million of annual adjusted cashflow in 2028. Shares in Entain were up 3.3% at 572.72 pence on Thursday afternoon in London. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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