CEE Divestment at 10x EBITDA

Research evidence excerpt

CEE Divestment at 10x EBITDA

Update

June 25, 2026 01:22 PM GMT

Morgan Stanley & Co. International plc+MEntain plc | Europe Ed Young

Equity Analyst

CEE Divestment at 10x EBITDA Ed.Young@morganstanley.comJamie Rollo +44 20 7677-1761

Jamie.Rollo@morganstanley.com +44 20 7425-3281

Entain has announced an agreement to sell 20% of CEE to its joint venture partner

EMMA Capital for €425/£366m, implying an enterprise value of €2.1/£1.9bn. Entain plc (ENT.L, ENT LN)

Completion is expected in Q4 2026, subject to regulatory approvals. We have Leisure and Hotels | United Kingdom

written about the potential for Entain to address its portfolio from multiple Stock Rating Overweight

Industry View Attractive

dimensions, including in this note: Portfolio Alchemy: Can Entain Turn Bronze Into Price target 1,040p

Silver Or Gold? and see asset optimisation as a potential support for the shares. Shr price, close (Jun 24, 2026) 554p

52-Week Range 1,032-500p

Mkt cap, curr (mn) £3,580

We note: Net debt (12/26e) (mn)* £3,483

EV, curr (mn)* £7,584

• The 10x multiple is in-line with the valuation implied in the put option

* = GAAP or approximated based on GAAP

liability and significantly above Entain's current 5.8x 2027e EV/EBITDA

multiple. The statement says that Entain continues to evaluate all strategic

options to exit its remaining minority shareholding, and we expect debate to

eventually settle on the likely price, timing and mechanism on the remaining

exits.

• The company has indicated proceeds will be used to pay down debt to below

3x net debt/EBITDA, after which cash will be returned to shareholders. We

think the shares could benefit from a mix of more reasonable leverage

levels, a signal of renewed capital discipline, and a simplification of the

business.

• Underlying guidance unchanged.