The FTSE 100 saw the Sports Betting Platform (LON:FLTR), which is listed on Flutter Entertainment (LON:FLTR) sports betting platform, add 13% on Thursday. .
Under the agreement, Flutter Entertainment will take over the shares currently held by Fastball, taking into account US$4.175 billion (£3.131 billion). The company added that the transaction is subject to approval of Flutter shareholder approval and that a general meeting is expected to occur by the end of the calendar year.
If the acquisition is completed, Flutter’s Fanduel interest in Fanduel will increase from 57.8% to 95%. The company continues, saying that the transaction will increase its exposure to a highly “attractive” US market, with the price of the transaction representing a discount on the intrinsic fair value of Fan Duel.
Flutter Entertainment added that it plans to acquire $2.0888 billion in cash and approximately 11.7 million new common stock directly into fastballs. Cash will be raised in cash on the £1.1 billion share placement and already on the company’s balance sheet. Additionally, we expect the end of the year leverage to be below 3.0x EBITDA after the transaction, but the medium-term target is 1.0x to 2.0x.
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Flutter CEO Peter Jackson said: Our number one position in the US key market is built on the many assets acquired through that transaction, supported by the capabilities of the broader group. Our intention has always been to increase our interest in the business. We are pleased to receive a discount earlier than originally planned and by our closest companions. ”
“We would like to use this opportunity to thank our fastball partners for their incredible support over the past two and a half years and their continued commitment to becoming shareholders quickly as shareholders of the broader group. Key media We look forward to continuing to grow our US business along with our partner Fox, as more states are moving to regulate sports betting and games.”
Following the update, Flutter Entertainment Shares has increased by 13.24%, up to 15,135.00p 03/12/20 13:00 GMT. This price is the highest ever price, with a 9,345.45pa share of approximately 38% of the analyst consensus target price.
The stock has a consensus hold rating from analysts and a “low-performance” stance of 75.00% from the market beat community. The company’s P/E ratio is 14,586 and its dividend yield is 2.67%.
