After announcing a $4.175bn (£3.131bn) conditional deal to buy the 37.2 percent interest in the company currently owned by Fastball, Flutter Entertainment is to take its stake in FanDuel to 95 percent. Boyd Gaming will continue to retain the remaining five per cent.
The global gaming and sports betting company is to fund the transaction with a combination of $2,088 billion in cash and the issuance of 11.7 million ordinary shares, which raises its stake in FanDuel from 57.8 percent. Flutter also declared its plan to put £ 1.1bn in equity.
Flutter Chief Executive Peter Jackson said of the transaction: “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.
“I would like to take this opportunity to thank our partners in Fastball for their tremendous support over the last 2½ 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.”
Flutter, which notes that the transaction is conditional on the approval of shareholders, comments that the translation dramatically increases its exposure to a US market that it believes is the most lucrative prospect for the industry today.’ The contract terminates the economic interest of Fastball in Fox Bet.
Lachlan Murdoch, Fox Corporation’s executive chairman and CEO, 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.”
— Flutter plc (@FlutterPLC) December 3, 2020