Paddy Power owner Flutter raises £812m in share placing
Paddy Power owner Flutter today said it has raised £812m in a share placing that will see Rupert Murdoch’s Fox Corporation boost its holding in the gambling giant.
Flutter, which also owns Betfair and Poker Stars, said it placed more than 8m new shares at £101 each, marking a 4.7 per cent discount on last night’s closing price.
The move will increase Fox Corp’s holding in the world’s largest online betting group, although the firms did not say how much the investment was worth.
It comes weeks after Flutter completed its £10bn takeover of gambling group Stars, which added Sky Bet to the Irish company’s portfolio of betting brands.
Fox Corp last year bought a 4.99 per cent stake in Stars worth $236m.
The boosted holding marks the US media group’s efforts to cash in on the rapidly growing US betting market.
Flutter has said it hopes the coronavirus crisis will prompt an acceleration of betting legalisation in the US as states looks to boost income tax.
In a trading update yesterday Flutter said revenue was up 10 per cent in the first quarter despite the impact of Covid-19.
While the sports betting market has suffered a substantial hit from the cancellation of fixtures, the firm said this had been offset by strong poker and gaming revenue.