Entain plc has entered into a definitive agreement to sell a 20% interest in its Central and Eastern European subsidiary, Entain CEE, to its joint venture partner, EMMA Capital. The transaction features a total cash consideration of approximately €425 million, serving as the opening move in a strategic plan to completely withdraw from the regional market.
The payment structure involves an initial €395 million cash delivery upon completion, with the remaining balance due in early 2027 based on the business unit’s final 2026 financial performance. The transaction values the entire Entain CEE venture at an enterprise value of €2.1 billion, representing roughly 10 times its core earnings (EBITDA).
Restructuring Corporate Holdings and Regional Control
Entain CEE was originally established in 2022 to spearhead the group’s expansion across the region, anchored by the prominent acquisitions of SuperSport in Croatia and STS in Poland. While both brands maintained leading market positions, the Entain board decided to offload the portfolio to simplify the parent group’s corporate structure and maximise value for its investors. Entain CEO Stella David said.
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.
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.
The completion of the deal will fundamentally alter the ownership framework of the regional gaming venture:
- Entain Equity Reduction: The group’s shareholding in Entain CEE will drop from 67.5% to 47.5%. Due to losing majority ownership, the unit will no longer be fully consolidated into Entain’s primary financial reporting sheets.
- EMMA Capital Expansion: The Czech investment group will see its direct equity stake rise from 22.5% to 42.5%.
- Shift in Voting Control: Concurrently, the Juroszek family, which holds the remaining 10% stake via its family foundations, has agreed to assign its full voting rights to EMMA Capital. This separate voting arrangement hands EMMA Capital immediate majority control over the day-to-day operations of the venture.
The agreement also grants the Juroszek family a put option over their 10% holding, allowing them to sell their shares to EMMA Capital in three separate portions over the next three years.
Debt Management and Updated Financial Guidance
The capital generated from the divestment will be used entirely to pay down Entain’s outstanding corporate debt. Corporate leadership expects the debt reduction to generate roughly £20 million in annualised interest savings, helping the group achieve its long-term target of lowering its reported leverage ratio below 3x.
Because Entain CEE will be removed from the parent company’s consolidated books, the group has updated its financial guidance for the remainder of the fiscal year. Entain now projects its 2026 online EBITDA margin to sit between 21% and 22%, shifting from the 23% to 24% range predicted when the CEE business was fully included.
Despite the accounting adjustments, the group reconfirmed its broader underlying targets. Entain remains on track to hit its core expectation of 5% to 7% growth in online net gaming revenue for the year while maintaining its long-term goal of generating approximately £500 million in annual adjusted cash flow by 2028.
The transaction is expected to officially close in the fourth quarter of 2026, pending standard regulatory clearances. Until a buyer is found for the remaining 47.5% minority shareholding, Entain will continue to record its proportional share of profits and dividends from the Croatian and Polish operations.