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GVC shares drop following management sales

Chief executive Kenny Alexander and chairman Lee Feldman both sold a significant proportion of their shares
March 8, 2019

Shares in UK-listed gambling companies took a beating on the back of speculation that the government could introduce stricter regulation on the bookies in the upcoming Spring Statement. While all the major gambling companies saw their shares drop, the move was most pronounced for GVC (GVC) with a decline of around 16 per cent. Significant share sales by two senior members of management exacerbated investor concerns.

IC TIP: Hold at 589p

Chief executive Kenny Alexander sold more than 2.06m shares (68 per cent of his holding), while chairman Lee Feldman sold 900,000 (75 per cent of his holding), both at 666p per share, banking £13.7m and £5.99m, respectively. Following the transaction, Mr Alexander still owns 1.24m shares while Mr Feldman retains 287,408. Mr Alexander said both “remain fully committed” to GVC, with the chief executive saying that he’s set on staying with the company for at least the next three years to see out the Ladbrokes Coral integration. A spokesperson for GVC said both wanted to sell for “personal reasons”, and that the timing was due to demand from an institutional shareholder.