GVC process to replace Chairman unrelated to recent share sales

By Tim Poole

GVC Holdings started a process to replace Chairman Lee Feldman well in advance of his recent share sale, Gambling Insider understands.

Earlier this month, Feldman sold 900,000 shares at a price of £6.66 ($8.71) each, retaining 287,408.

CEO Kenny Alexander also sold just over two million shares at the same price, retaining 666,666.

However, recent reports within the UK media have mistakenly emphasised the impact of this share shale on Feldman’s position.

Gambling Insider understands the process to replace him was initiated purely as a response to recently implemented corporate governance guidelines for public companies; it has been ongoing for some time.

These guidelines dictate the length of a chairmanship must not exceed nine years, whereas Feldman has been in his role since 2008, initially joining the company in 2004.

At the time of Feldman and Alexander’s share sales, Gambling Insider was told the deals had been done to "satisfy demand from an institutional buyer," with both still holding a significantly higher amount than the industry average.

GVC’s share price has nevertheless dropped considerably in March, having peaked at £7.17, before Feldman and Alexander's offloading of shares; it is currently trading at £5.16.

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