Flutter to trade £ 1 billion of shares to expand stake in Fanduel

Published on
Flutter to trade £ 1 billion of shares to expand stake in Fanduel

Flutter Entertainment revealed the details of the new issue of shares to raise £ 1.1 billion to increase its stake in FanDuel.

The holding group of Paddy Power Betfair and Pokerstars said a total of eight million new common shares of the company were released by Goldman Sachs International and J&E Davy.

The initiative is expected to raise gross revenues of approximately £ 1.1 billion, about a third of the £ 3.13 billion to be paid to Fastball for its 37.2% stake in FanDuel – bringing Flutter’s total stake to 95%.

Media giant Fox Corporation has pledged to invest more in Flutter as part of the operation. Negotiations are expected to start on Tuesday, 8.

In a statement, Flutter said: “The company consulted several of its main shareholders and respected the principles of preference through the allocation process as far as possible. The company is satisfied with the strong support it has received from its shareholders ”.

Lachlan Murdoch, president and chief executive of Fox Corporation, also said: “We are pleased to be participating in this initiative to raise capital. Maintaining our shareholding in Flutter means our long-term commitment and continued confidence in the ability of management with an opportunity for rapid growth in the USA ”.

Murdoch added: “Fox’s audience has proven to be highly engaged with free content to play and bet on. And, we are excited to offer them access to products from Flutter, the market leader in American brands. ”

Details of Flutter operation

The announced agreement will cause Flutter to increase its stake in FanDuel from 57.8% to 95%. The company plans to offer the media giant the option to purchase 18.5% of the brand in July 2021.

As such, Flutter will pay $ 2.09 billion to Fastball – a consortium of investors led by venture capital giant KKR – in cash for all of its stake in the business.

The remainder of the transaction will be settled through 11.7 million Flutter shares valued at £ 133.50 each – the company’s share price when the market opened last Thursday.