Flutter Entertainment PLC (LON:FLTR) has raised a gross GBP1.1bn from a placing to help it significantly bump up its stake in US venture FanDuel.
The owner of bookmakers Paddy Power and Betfair confirmed the result of a placing announced on Thursday at a price of 14,000p per share on Friday.
The FTSE 100 group said Thursday that it has agreed to increase its stake in FanDuel, the fantasy sports gaming platform with over 9.5mln customers across the US, up to 95% from 57.8% at a cost of US$4.17bn, roughly half-and-half in cash and shares.
Flutter is looking to ‘convert’ FanDuel’s sports enthusiasts into real money gamblers as part of a wider landgrab by betting companies across the country as increasing numbers of US states legalise gambling.
READ: Flutter says it’s winning US gambling race but bookies know favourites don’t always win
The company said the shares to be issued in the placing represent approximately 5.2% of its issued share capital, with the price at a 3.4% premium to the intra-day price at time of launch and a discount of approximately 2.1% to the closing price the day before.
Flutter said it consulted with “a number” of its major shareholders prior to the placing and “has respected the principles of pre-emption through the allocation process insofar as possible”.