Gambling’s merger between Flutter Entertainment Plc and The Stars Group Inc (TSG) has cleared a further hurdle, as this afternoon TSG shareholders approved terms forming a new $11 billion entity.
Issuing a corporate filing, TSG governance confirmed that company investors had voted 99% in favour of completing the merger deal with Flutter.
TSG’s merger approval follows Flutter’s shareholder vote on Tuesday, which saw investors of the FTSE100 betting group unanimously approve of the combination forming online gambling’s ‘outright leader across all market verticals’.
Agreeing to an all-share combination, merger terms will see Flutter investors take a 55% majority shareholding in the new business, with TSG shareholders securing the remaining 45%.
Securing UK and Australian regulatory hurdles during Q1 trading, Flutter and TSG are set to complete the merger ahead of the deal’s planned schedule, securing their intended merger approval during the first half of 2020.
Deal focus will now shift towards the US and Pennsylvania courts to assess the business combination’s impact on the nascent US online wagering marketplace.
Deal executives will move to form a new 14-man board led by Flutter Chairman Gary McGann, with TSG counterpart Divyesh Gadhia (TSG) assuming the role of Deputy Chair
City analysts await the publication of Flutter and TSG’s new combined merger prospectus, which will establish the short and long-term synergies of the combined entity as well as key business objectives.