Flutter calls for £850m private placement capitalising on disruptions

Flutter Entertainment Plc has this afternoon confirmed that it plans to sanction a private placement of 8 million corporate shares made available to ‘institutional investors’.

The enlarged FTSE100 gambling group seeks to raise a further £850 million in working capital, strengthening its liquidity to take advantage of the short and long-term opportunities presented by a disrupted marketplace.

Confirming the placement, Flutter governance details four key areas, where the company aims to accelerate its growth.

Flutter highlights the rapid expansion of its US presence as its top corporate priority, in which the company will move to significantly advance its joint venture partnership with FOX Sports across all US regulated markets.

As US joint-venture partner FOX Corporation has committed to securing an increase in its Flutter Plc equity as part of the placement.

Lachlan Murdoch, CEO of Fox Corporation said: “FOX is bullish about the opportunities in the digital sports wagering market. FOX Bet has shown strong growth since launching last fall, and we look forward to continuing that success with our partner, Flutter. FOX’s investment in Flutter underscores our confidence in Flutter’s business and its management’s ability to continue to drive leadership in the U.S. market”

At an operating level, Flutter details that the placement will help the company secure quicker enlargement co-synergies with The Stars Group Inc. The FTSE firm aims establish its competitive advantage across all online gambling product categories (poker, casino, sports betting and Exchange wagering).

Flutter underlines that the £850 million placement, will ‘secure early finance cost savings’ for an enlarged group, in which governance aims to de-leverage the firm’s balance sheet earlier than projected lowering long-term interest payments.

Closing its statement, Flutter adds that a stronger balance sheet will help the firm navigate and capitalise of COVID-19 opportunities, in relation to unknowns on the timing of sports return’, market regulations and economic uncertainties.

“The group believes that the current operating environment is likely to result in longer-term changes to the sector landscape which will lead to further opportunities. The placing will better position the group to move quickly to capitalise on such opportunities should they arise, accelerating its four-pillar strategy and consolidating its market leadership positions,” Flutter explained.

Earlier this afternoon, Flutter presented its Q2 trading statement in which the enlarged company recorded a 10% increase in group revenues, despite being forced to close its entire UK retail betting presence

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