JP Morgan Chase reduces Entain stake to below 3% within two weeks of reaching 7%

(AsiaGameHub) –   JP Morgan Chase has reduced its holding in Entain to under 3% less than two weeks after raising it to 7%. 

A Notification of Major Holdings released this morning indicates that the banking giant has cut its position in the Ladbrokes and Coral parent company to beneath the mandatory disclosure threshold of 3%. 

This threshold was passed on Monday, 18 May—just 10 days after it was disclosed that JP Morgan had boosted its total interest in the firm to 7%, comprising 5.6% in direct voting rights and 1.4% via financial instruments.

This rise came after the shutdown of Ricky Sandler’s New York hedge fund, Eminence Capital. Sandler, a former Non-Executive Director at Entain until his firm liquidated last month, offloaded his remaining 5.8% stake in Entain on 7 May. 

At what price might JP Morgan Chase have sold its Entain shares?

It remains unclear whether a private, off-market transaction took place between Eminence and JP Morgan Chase. 

However, JP Morgan Chase has been steadily offloading its Entain shares since acquiring them, aside from a minor uptick where it raised its stake from 7.05% to 7.09% on 11 May. 

Subsequently, filings with the London Stock Exchange have shown that JP Morgan Chase sold shares on 12, 13, 14, and 15 May, resulting in a remaining position in the company that is below 3%. 

Entain’s stock price stayed relatively steady between 8 May and 15 May, opening at 532.28p on 8 May and finishing around 532.4p on 15 May. 

Throughout this timeframe, the shares hit a low of 501.92p (on 12 May at roughly 10:25am UK time) and a high of 550.8p (on 8 May at approximately 1:35pm).

Typical for a public limited company, Entain has faced significant speculation in recent months, including rumors of a potential takeover, although management has indicated no likelihood of such a transaction. 

For the FTSE 100 member, group revenue for FY25 exceeded £5.2bn, but the company recorded a loss of £681m, marking its third straight year of losses. 

Although JP Morgan provided no explanation for either increasing or decreasing its position in the UK-based gambling operator, observers might reasonably assume an off-market arrangement was involved.

Furthermore, despite the divestment of a substantial portion of shares, Entain’s stock price appears largely unscathed over the last fortnight, currently trading at 537p as of 1:00pm today.