Paddy Power-Betfair Merger Nears Completion Ahead of SchedulePublished January 19, 2016 by Lee R
The €10 billion deal gives a slight edge to Paddy shareholders.
At last, Paddy Power and traditional heavyweight rival Betfair are closing in on completion of a near €10 billion merger. The merger which was announced in the summer of 2015 is considered one of the year's biggest deals in the iGaming industry.
Paddy Power Betfair
The new mega-operator will take the form of a new €2 billion revenue global gambling business called Paddy Power Betfair, with a combined value of €9.4 billion on the London and Dublin stock exchanges.
Ireland's Competition and Consumer Protection Commission approved the deal, saying that the merger would not “substantially lessen competition in any market for goods or services in the State.”
The merger is set to complete as of February 2nd, after the British high court approves a scheme of arrangement for Betfair on February 1st.
The shares of the new company Paddy Power Betfair’s shares are set for admission to the London and Dublin stock exchanges for open trade beginning February 2nd.
On January 27th, details of an additional €80 million special dividend payable to shareholders will be released.
The merger is actually taking place two months ahead of original schedule, as the two companies set a target date for the end of March when they announced the merger last August.
Paddy Power shareholders will own 52 per cent and Betfair 48 per cent. The main listing will be on the London Stock Exchange, with Dublin holding the secondary listing. The new company will own and operate online betting businesses in Europe, the United States and Australia, host over four million current customers from more than 100 countries, and encompass approximately 600 land-based betting shops in Ireland and Britain.
Betfair chief executive Breon Corcoran will head the new group with Paddy Power chief executive Andy McCue taking the role of chief operating officer.
Online Revenue Share
An estimated 80% of Paddy Power Betfair's annual revenues will be from online business.