Ladbrokes owner Entain puts stockbroker up for sale
Ladbrokes owner Entain tries to sell struggling Intertrader exchange business
Ladbrokes owner Entain is trying to sell his struggling Intertrader trading business.
Entain, the FTSE100 company behind bookmaker Ladbrokes and online bingo company Gala Coral, was developing Intertrader as recently as 2018.
The decision to offload him follows a row with real estate mogul Robert Tchenguiz, who was one of his biggest clients.
Change of course: Entain, the FTSE100 company behind bookmaker Ladbrokes and online bingo company Gala Coral, expanded Intertrader in 2018
Intertrader – along with other listed brokers CMC Markets and IG – is suing the entrepreneur for millions of pounds after his bet on transport company FirstGroup turned sour.
Last year, Tchenguiz acquired an almost 7% stake in FirstGroup – which operates the Great Western Railway and TransPennine Express – through several brokers, including Intertrader.
At one point his investment in FirstGroup, which also runs numerous bus services, was worth up to £ 100million.
However, the pandemic caused FirstGroup’s share price to plummet and Tchenguiz’s brokers were forced to sell its shares, leaving a massive loss. Tchenguiz refuses to pay part of what the brokers claim their duty.
Entain, which received an £ 8 billion takeover bid from US MGM Resorts last month, said a sale of its Intertrader business was “highly likely” within a year .
A spokesperson for Tchenguiz declined to comment.