Company News

BUZZ-Flutter Entertainment: Jumps after merger deal with Stars Group

(Adds Stars Group movement)

** London-listed shares of gambling group Flutter Entertainment Plc rise ~16% to their highest in over 15 months

** Co announces a merger with Nasdaq- and Toronto-listed Stars Group Inc in an all-share deal

** U.S. shares of Stars jump 34% in early trade - set for their best day in more than 5 years; Toronto shares up ~30%

** Co adds combined group will be a global leader in sports betting and gaming

** Following the merger, shareholders of Flutter, formerly known as Paddy Power Betfair, will have about 54.64% of the new company, while TSG Shareholders will own the rest

** Merger is expected to be at least 50% accretive to Flutter’s underlying EPS in the first full financial year after completion - Flutter

** Davy Research says merger represents “truly transformational deal” for both companies

** Deal would increase exposure to unregulated markets (Germany, Russia) and poker - Davy Research

** Jefferies calls it a “compelling merger”, saying it will boast a compelling global footprint with significant cross-selling opportunity and attractive financials

** YTD, Flutter shares up 19.3%, TSG.O down 7.3% (Reporting by Aniruddha Chakrabarty)