There will be no time to celebrate Christmas for Paddy Power and Betfair governances as the shareholders of both companies have agreed outright to approve the £6.2 billion merger deal.
Holding simultaneous ‘extraordinary meetings’ on Monday 21 December in which shareholders filed their votes, the merger deal saw a 99% investor approval, gaining a further significant step towards the creation of new business entity ‘Paddy Power Betfair’.
In accordance with the new entity’s terms Paddy Power shareholders will own 52% of corporate shares. Paddy Power shareholders will further be rewarded with a special €80 million dividend on the closure of the deal.
Both operators had sent their investors’ merger prospectuses in November outlining corporate integration plans and co-synergy creations. The combined entity will look to establish £25 million in savings in 2016 through the reduction of labour costs.
The reduction in work force, forms part of a £50 million short term co-synergies’ savings target set by both operators.
The merger still awaits the approval of the Irish Commission of Competition & Consumer Protection. Last week the UK Consumer Markets Authority approved of the merger in its Phase UK competition review.
When the merger is complete, Breon Corcoran, who currently serves as CEO of Betfair, will become CEO and an executive director of Paddy Power Betfair. Paddy Power’s current CEO Andy McCue will become the company’s COO and an executive director of ‘Paddy Power Betfair’