The merger between Flutter and The Stars Group has received approval from Flutter’s shareholders.
During Flutter’s extraordinary general meeting, which was held yesterday (21 April) the gambling company’s shareholders holding 99.2% of shares approved the merger while shareholders holding 0.81% of shares voted against it.
Company shareholders also voted to authorise new shares to be allotted to TSG shareholders, to increase the number of directors allowed and to approve the capitalisation of Flutter’s merger reserve account balance after the deal is complete.
Shareholders also approved resolutions for a reduction in Flutter’s company capital and to reduce the quorum required for general meetings.
Flutter’s governance maintains its corporate schedule with the aim of completing the merger by H2 2020. The merger still requires final shareholder approval from TSG investors, which is set to take place on Friday 24 April.
Although the merger requires approval from both TSG and Flutter shareholders, it also requires regulatory approval from several regulatory bodies.
The merger is subject to both regulatory and authority approval from several bodies including the London Stock Exchange, FCA and Euronext Dublin as well as regulatory approval in the UK, Ireland, US, Canada and Australia.
Last month, the merger received regulatory approval from the UK Competition and Markets Authority (CMA). Approval from the CMA came after the body launched an investigation into the proposed merger in early February.
In February, the merger also received regulatory approval from The Australian Competition and Consumer Commission (ACCC).
Under the deal, Flutter will exchange 0.2253 new shares for each share of TSG. Flutter shareholders will own about 54.64% of shares in the new combined business while TSG shareholders will hold the remaining shares. The merged company will continue to operate under the Flutter Entertainment name.
The companies hope to deliver substantial value creation for shareholders from pre-tax cost synergies of £140 million per annum and potential revenue cross-sell in international markets and lower finance costs.
Once Flutter finalizes its purchase of TSG it will form a combined business with an annual revenue of $4.7bn (£3.8bn). When the deal was made, Flutter said the merger would create the largest online gambling company on the planet.