Better Collective CEO and largest shareholders ignite multi-million share divestment
Major shareholders reduce total shares by 12.3% as affiliate firm targets diversified investor base
Better Collective’s three majority shareholders – CEO Jesper Søgaard, COO Christian Kirk Rasmussen and CFO Flemming Pedersen – have offloaded a combined 3.1 million shares in the Stockholm-listed affiliate business.
The multi-million divestment took place at a price of SEK 131.00 per share, raising more than SEK406m (£35.6m) in funds for the group. It is understood there was high demand from Nordic and international institutional investors.
The primary reasons for the divestment included diversifying the trio’s personal holdings, and in the case of Pedersen, partially to finance payment of inventory tax.
In addition, the executives said the sale was to further diversify Better Collective’s shareholder base.
The sell-off signals a 12.3% reduction in total share capital owned by the management team, reducing the total shares owned by Søgaard and Rasmussen to 23%, or 10,671,179 and by 100,000 shares in the case of Pedersen.
Better Collective CEO Søgaard welcomed the “broad-based interest” from both current and new shareholders in the affiliate operator’s business model.
This divestment marks the first time the founders of Better Collective have divested shares in the business since it began in 2002.
“By realising a small part of our holdings in Better Collective, we spread our personal holdings somewhat and at the same time get the support of more strong institutional investors,” said Søgaard.
However, he moved quickly to dismiss sale speculation, stating that he and Rasmussen remained “committed” to their roles as CEO and COO.
To confirm this commitment, the trio agreed to a voluntary share lock-up of a minimum of one year, in which they will be prohibited from selling further stakes in the business.
“Better Collective has developed into a global sports betting media group, with significant opportunities in new geographies like the US and Latam and new verticals as esports,” said Søgaard.
“We continue to see great potential and we are eager to execute on our strategy as we have done in the past,” he added.