Paddy Power Intends To Buy Betfair And Create A Game Online Empire

Paddy power plc has agreed on configuration conditions with betfair group plc, intending to acquire its competitor for 2.87 billion pounds of sterling ($ 3.2 billion) as part of a transaction, which will create the world’s largest online gaming organization with accessible to stock exchanges. Bloomberg writes about it.

Two weeks after the release of a press release of the merger, on tuesday detailed details of the transatiction were presented, including an assessment of the annual cost savings without taxes, which makes up about 50 million pounds. Giant company plans to obtain an assessment for the british index ftse 100 (index «finenchel times»), reports analyst peel hunt nick bathers.

«This is an argement between two strong market players, aimed at creating a leading online company in the industry with incredible opportunities, – writes barem. – potential adoption in the ftse 100 rating will open an extended group for an even greater audience of investors».

Paddy power and betfair combined the two most progressive in the enterprise industry just at a time when regulation is tightened, and the tax policy makes the company save their activities by mergers. Take at least one of the latest deals in the segment – last week, gvc holdings plc agreed to acquire bwin.Party digital entertainment plc approximately for 1.12 billion pounds sterling.

The paddy power and betfair association process found great support among shareholders of both organizations, and it is unikely that there will be many obstacles on this path, david holowan, analyst from the dublin company merrion capital.

Under the conditions that have become known on tuesday, betfair investors will receive 0,4254 new shares in a single company in a quotation 3,085 pens per piece. This is 19% more than of the betfair shares at the time of closing the exchange on august 25, a day before the declaration date of the merging plans.

Shareholders paddy power will receive special dividends – 80 million euros ($ 89.7 million), owning 52% of the shares of the new company paddy power betfair plc. When determining the initial dividends, the board of directors will focus on the payment ratio of dividends in 50% of income after taxes.

Shares paddy power increased by half airlum, up to 99.93 euros per piece in dublin, and 0.9% (up to 3,165 pence) in london.