Shay Segev bets big on GVC with new share purchase
Newly appointed GVC CEO takes out £2m third-party loan to fund share purchase under 2016 incentive plan
GVC’s new CEO, Shay Segev, has exercised share options to purchase an additional 1,491,800 shares in the FTSE 100 operator, it has been revealed.
Segev, who was promoted from COO to the top job last month, replacing Kenny Alexander who stepped down after 13 years, exercised the option to purchase the shares at a price of 317.03p per share for a total price of £4.7m.
The share options were made available under GVC’s 2016 Management Incentive plan, which allows senior management at the multi-brand operator to purchase stock at below the market rate or at a discount.
GVC has confirmed that in order to partially fund the options purchase Segev drew down on a £2m loan from an unnamed third-party bank.
It is understood the 44-year-old granted a pledge in favour of that bank over his share portfolio, including his GVC shareholding, as security for the loan.
This latest trade increases Segev’s total shares in the business to 1,602,800.
GVC CEO Shay Segev
GVC has also confirmed several other market purchases of shares by senior individuals within the business including chairman Barry Gibson, who purchased an additional 18,700 shares.
GVC audit committee chair Pierre Bouchot and independent director Jette Nygaard-Andersen were also among those to buy shares in the London-listed firm.
Following these transactions, the nine GVC directors hold a total of 1,838,175 shares, equivalent to 0.31% of the company’s issued share capital.
GVC declined to comment on the trades, but the deals will serve as a vote of confidence in the company as it looks to move into the future following the departure of Kenny Alexander.
In its H1 2020 financial results, GVC reported online net gaming revenue (NGR) growth of 19% to £1.2bn as strong digital performance helped offset retail losses following lockdown.
Online underlying EBITDA increased by 53% year-on-year to £368.6m.
In his first financial results call following his step up to the CEO role, Segev said Alexander had left a “strong foundation” for future growth in the business.