The FTSE-100 gambling group which owns Ladbrokes has hired bankers to prepare a sale of PartyPoker as it seeks to fend off activist investors by reinvigorating its core operations.

Sky News has learnt that Entain is working with advisers from Oakvale Capital on a prospective sale of the online poker business.

Industry sources who have been contacted about the sale said on Tuesday that they expected it to fetch around £150m.

Its valuation represents a huge cut on the £5bn that PartyGaming, PartyPoker’s then parent, was worth on the day of its London flotation in 2005.

The business, which has seen a mass exodus of customers in recent years, is non-core to Entain’s business.

As well as Ladbrokes, Entain owns Coral and a stake in BetMGM, a major US betting player.

Entain has endured a torrid period as activists have built an increasingly prominent position on its share register.

Access to illegal crypto casino sites for sale on Facebook and Discord for as little as £8

Shield children from ‘bombardment’ of gambling ads at football games, say MPs

Ladbrokes and Coral owner Entain agrees to pay £585m after bribery investigation

The company has seen its shares slump by more than 40% over the last year amid a deluge of regulatory problems.

It is currently being run by interim chief executive Stella David, having parted company with Jette Nygaard-Andersen late last year.

Shares in Entain were trading at around 739p on Tuesday morning, giving the company a market capitalisation of just over £4.5bn.

Be the first to get Breaking News

Install the Sky News app for free

Entain and Oakvale both declined to comment.

Related posts:

Sausage ban ‘nonsensical’, UK tells Brussels ahead of Northern Ireland talks Football’s coming home, travel industry hopes for lifeline and shortage of lorry drivers US inflation hits highest rate since 1981 as Ukraine war pushes up energy prices Banks off the hook as City watchdog concludes probe into COVID cash calls Inflation hits 40-year high – who’s hurting the most? And could upskilling tackle labour shortages? Firms face ‘distress’ unless energy cost crisis tackled, warns CBI Asda joins supermarket dash to ditch ‘best before’ dates on fresh produce Rolls-Royce-backed Reaction Engines plots flight-path to £1bn public listing House prices, Citroen and a more sustainable London marathon Cost of living pain still to come for millions despite Bank of England’s rosier outlook Ex-BP boss sees risk of winter price spike and defends role for oil and gas in energy future Decarbonisation, cyber attacks and childcare support