23rd Dec 2021 08:17
(Alliance News) - Flutter Entertainment on Thursday said it has bought Italian online gaming operator Sisal from CVC Capital Partners Fund for EUR1.91 billion, around GBP1.62 billion.
The Dublin-based company, formerly known as Paddy Power Betfair, said the transaction is likely to complete during the second quarter of 2022 and is expected to be accretive to adjusted earnings in the first 12 months after completion.
Flutter said the deal increases its exposure to an "attractive, fast-growing, regulated online market". The company highlighted Italy is Europe's second largest regulated gambling market and one that has seen online penetration grow from 10% in 2019 to 20% in 2021.
Sisal is a betting, gaming and lottery operator based in Milan. It expects to report earnings before interest, tax, depreciation and amortisation of EUR248 million in 2021. Of this, 90% comes from Italy and the rest from lottery operations in Turkey and Morocco. Revenue is seen at EUR694 million in 2021.
Flutter said it will pay cash for Sisal, and the price tag includes paying off all of Sisal's debt. Flutter has agreed additional debt facilities with Barclays Bank to finance the acquisition.
Flutter CEO Peter Jackson commented: "I am delighted to add Sisal, Italy's leading gaming brand, to the group as we look to attain a gold medal position in the Italian market. For some time we have wanted to pursue this market opportunity via an omni-channel strategy and this acquisition will ideally position us to do so. Sisal has grown its online presence significantly in recent years, aided by its proprietary platform and commitment to innovation.
"I'm excited to see how Flutter can complement these capabilities through our scale, differentiated products and operational capabilities."
Flutter shares were up 2.7% early Thursday, outpacing the wider FTSE 100.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.1% at 7,349.60
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Hang Seng: up 0.4% at 23,191.76
Nikkei 225: closed up 0.8% at 28,798.37
S&P/ASX 200: closed up 0.3% at 7,387.60
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DJIA: closed up 261.19 points, or 0.7%, at 35,753.89
S&P 500: closed up 1.0% at 4,696.56
Nasdaq Composite: closed up 1.2% at 15,521.89
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EUR: up at USD1.1332 (USD1.1327)
GBP: up at USD1.3359 (USD1.3346)
USD: firm at JPY114.25 (JPY114.22)
Gold: up at USD1,806.00 per ounce (USD1,797.90)
Oil (Brent): up at USD75.25 a barrel (USD74.74)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Thursday's key economic events still to come
0830 EST US personal income & outlays
0830 EST US advance report on durable goods
0830 EST US jobless claims
1000 EST US University of Michigan survey of consumers
1000 EST US new residential sales
1030 EST US EIA weekly natural gas storage report
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People who catch the Omicron variant of Covid may be less likely to end up in hospital, studies have suggested, amid rising case rates and new restrictions across the UK nations. Two new studies have suggested catching Omicron is less likely to result in severe symptoms and hospital admission than earlier Covid strains like Delta. But Neil Ferguson, from the Imperial College London team behind one of the studies, warned Omicron's severity may be offset by the "reduced efficacy" of vaccines to stop it being transmitted. The new data was released after UK Prime Minister Boris Johnson faced calls to outline his post-Christmas Covid strategy for England, as Northern Ireland, Wales and Scotland have all announced new restrictions to tackle the Omicron variant. Recorded case rates of Covid across the UK rose above 100,000 on Wednesday for the first time since the start of the pandemic. New research from Imperial College London has indicated that people with PCR-confirmed Omicron are 15% to 20% less likely to need admission to hospital, and 40% to 45% less likely to require a stay of one night or more.
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UK car production saw the worst November performance since 1984 last month despite a surge in demand for battery electric vehicles. The Society of Motor Manufacturers & Traders said November UK car production was the fifth consecutive month of decline, dropping 29% from a year before to 75,756 units, the worst figure seen in 37 years, as car makers continue to battle with a worldwide shortage of semiconductors. It added the figure was also reflective of the closure of a car factory in the summer, which will reduce year-on-year comparisons until next July. Production for domestic vehicles declined 19% last month from November 2020, while the figure for the overseas market fell by 30%.
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Russian President Vladimir Putin will hold his annual press conference on Thursday. The Kremlin has said it will allow up to 500 domestic and international journalists to attend. In 2020, only hand-picked reporters were admitted due to coronavirus restrictions, but the conference still lasted four and a half hours. The event comes against the backdrop of weeks of international concern over reports that Russia is preparing to invade neighbouring Ukraine. Moscow rejects the accusations. Putin is expected to comment on Russian proposals for binding security guarantees after Moscow recently submitted a draft agreement to NATO, the US and their allies. Negotiations are expected to start in January.
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BROKER RATING CHANGES
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none reported early Thursday
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COMPANIES - FTSE 100
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BHP said it has received a payment from Noront Resources in compensation for the Canadian nickel miner breaking its agreement to support a BHP takeover offer. Noront has made a CAD17.8 million, about USD13.9 million, termination payment to BHP. BHP on Tuesday kept its offer for Noront at CAD0.75 per share, which is 47% below rival Wyloo Metals's proposal of CAD1.10. Wyloo said the Noront board supports its latest bid. On Tuesday, BHP had said it would not bump up its offer for Noront to match the one on the table from Wyloo.
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COMPANIES - FTSE 250
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Construction firm Balfour Beatty said its US subsidiary Balfour Beatty Communities has reached a resolution with the Department of Justice. The construction firm said the resolution resolves the DoJ's criminal and civil investigations into some performance incentive fees improperly claimed by Communities between 2013 and 2019 and related to maintenance work at US military housing installations. Under the terms of the resolution, Communities has pleaded guilty to one count of fraud and has agreed to the appointment of an independent compliance monitor for a three-year period. Communities cooperated fully with the DoJ in its investigation, Balfour said. Communities will pay a total resolution amount of USD65.4 million, comprised of USD33.6 million in penalties and USD31.8 million in restitution, Balfour added.
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International Public Partnerships said it has bought a small portfolio of UK public-private partnership investments for an initial GBP3.1 million. The infrastructure investment company said the portfolio was made up of interests in two community hospitals and minority interests in the Building Schools for the Future projects. Further, investment in minority interests in a further five BSF schemes from the same portfolio and representing up to GBP3.0 million of additional investment, will be made in the coming months, it added.
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COMPANIES - MAIN MARKET AND AIM
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Retail and leisure assets investor Newriver REIT said it has completed the disposal of Poole Retail Park in Dorset for GBP58.0 million. The price is a 7.4% premium to the last valuation and is 30% higher than when it acquired the asset in October 2019. Chief Executive Allan Lockhart commented: "This disposal demonstrates the strong returns that can be generated from our experienced asset management platform through capital partnerships. In a short space of time we have completed numerous leasing transactions at the retail park which have improved the customer offer and supported the asset's income and valuation. We are delighted to have secured such good pricing on this disposal which demonstrates the inherent liquidity in our portfolio."
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COMPANIES - GLOBAL
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Novartis's arthritis medicine Cosentyx has been approved by the US Food & Drug Administration for additional treatment, the drugmaker said late Wednesday. The drug can now be used to treat active enthesitis-related arthritis in patients four years and older, and active juvenile psoriatic arthritis in patients two years and older. Basel, Switzerland-based Novartis claims Cosentyx is the only biologic treatment approved for children and adolescents for both forms of arthritis in the US.
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Thursday's shareholder meetings
Beximco Pharmaceuticals Ltd - AGM
Orosur Mining Inc - AGM
Rambler Metals & Mining PLC - GM re allotment of shares
Yew Grove REIT PLC - GM re takeover by Slate
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By Tom Waite; [email protected]
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