Shay Segev, the new CEO for the gambling operator GVC Holdings PLC, has placed a huge seven-figure bet on the company’s future success.
This comes after it was revealed that GVC reportedly faced a 14% drop in first-half profit during the COVID-19 crisis.
Last month, Segev was appointed as GVC’s CEO from Chief Operating Officer after the abrupt resignation of Kenny Alexander in July. Alexander faced harsh criticism in March 2019 when he and then-chairman Lee Feldman collectively sold up to £20m of their GVC shares.
Segev managed to acquire the shares at a lower cost of £3.15, which is well below Monday’s opening price of £7.66. GVC CEO’s actions are fully exercised under the company’s 2016 Management Incentive Plan, which had him to draw down a £2m loan from a ‘third party bank.’
Other high-profile members from the company that are boosting their holdings include Chairman J M Barry Gibson, who added 18,700 shares to his existing 47,787, while Audit Committee Chair Pierre Bouchot added 11,500 to his 27K, and Independent Director Jette Nygaard-Andersen nearly doubled her holdings to 9,900 shares.
Like most UK gambling operators with a retail presence, GVC’s fortunes have been impacted by COVID-19 restrictions and the suspension of major sports. But due to the company’s US-facing online gambling/sports betting joint venture with MGM, its share price has fortunately recovered from most of its losses.