Consideration for the transaction is expected to be satisfied through a combination of US$2.088 billion in cash and the issue of approximately 11.7 million new Flutter ordinary shares directly to Fastball. The cash element will be funded through cash on balance sheet and an equity placing to raise approximately £1.1 billion.
Commenting on the agreement, Peter Jackson, Flutter Chief Executive, said: “Flutter’s initial acquisition of a controlling stake in FanDuel in 2018 has been transformational for the shape of the Group.”
“Our number one position in the crucial US market is built on many of the assets we acquired through that transaction, supported by the broader Group’s capabilities. Our intention has always been to increase our stake in the business and I’m delighted to be able to do so earlier than originally planned and at a discount to its closest peer,” Jackson added.
“I would like to take this opportunity to thank our partners in Fastball for their tremendous support over the last 21⁄2 years and for their ongoing commitment to Flutter as soon-to-be shareholders in the wider Group. We look forward to continuing to grow our US business, alongside our key media partner FOX, as further states move to regulate sports betting and gaming,” he concluded.
The transaction is conditional on Flutter shareholder approval. A circular will be posted to shareholders in due course to convene an extraordinary general meeting, which is expected to take place prior to the end of December 2020.
Lachlan Murdoch, Executive Chairman and CEO of Fox Corporation, commented: “We are delighted to participate in this capital raising. Maintaining our ownership stake in Flutter signifies our long-term commitment to Flutter, and ongoing confidence in management’s ability to execute against the fast growing US opportunity.”
“FOX’s audiences have proven to be highly engaged with free to play and wagering content, and we are excited to offer them access to products from Flutter’s market leading stable of US brands,” Murdoch concluded.
Source: GMB / G3 Newswire
