SBC News Voice of the Sports Betting Industry
Reacting to strong market interest driven by its announced £6 billion merger with competitor Paddy Power, top shareholders in Betfair have sold up to 8 million shares at £32.50 according to Barclays the firm’s sole trading book-runner.
The mass sale of Betfair shares was conducted by Brussels based investment firm La Peigne SA, which manages investments on behalf of Bernard Arnault, France’s richest man.
The sale of 4.6 million shares, valued at £155 million sees Arnault halve his shareholdings in the operator.
Betfair Co-founder Edward Wray is reported to have offloaded 2.75 million shares in the company which have been valued at +£92 million. The sale of shares will see Wray’s holdings trimmed to 6.1 million company shares, Wray’s advisors are reported to have agreed not to sell any more stock for 90 days.
The Paddy Power tie-up which was first announced in late August, has seen Betfair’s share price gain 30% increase from £24.20 (August value) to £32.50 (5 October closing price).
London business news sources report that the Betfair’s share price surge has caught the interest of several institutional investors who were keen to buy up stock prior to the company’s planned merger with Paddy Power.
