30th Apr 2020 10:47
(Alliance News) - Gambling firm Flutter Entertainment PLC on Thursday said it will complete its Stars Group acquisition next week after obtaining shareholder approval.
Flutter's shares were up 5.7% at 9,986.00 pence in London in morning trading, the best performer in the FTSE 100.
Paddy Power and Betfair owner Flutter will complete its all-share merger with Sky Bet owner Stars Group on Tuesday next week. This follows approval from shareholders in both companies as well as all necessary regulatory clearances.
Stars shareholders are to receive 0.2253 of a Flutter share per Stars share owned. Following this, Flutter's shareholders will own 55% of the combined business, and Stars Group the rest. The combined business will be worth over GBP10 billion
This combined business will have five reporting segments and will report earnings on the basis of these segments. These are to be: Stars Group International, excluding current US operations; Paddy Power Betfair; Sky Betting & Gaming; Australia, including Sportsbet and BetEasy; and US, including FanDuel Group and all Stars Group US operations.
In the long term, Flutter will merge Stars Group's current international operations with Paddy Power Betfair. Then, Paddy Power will move into a newly created UK & Ireland division which will include Sky Betting and Gaming.
Flutter Chief Executive Peter Jackson said: "I am delighted to confirm that our transformational combination with Stars Group will complete on 5 May. The enlarged group brings together exceptional brands, products and businesses, a hugely talented and experienced team, and a diverse global presence. The strength of our combined portfolio of assets means that we approach the future with confidence in these uncertain times."
By Anna Farley; [email protected]
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