Majority of Shareholders Support Secondary Listing for Flutter Equity in the US

By John Isaac,
Editor at online-gambling.com

John Isaac Editor at online-gambling.com

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Last updated: April 8, 2023

FanDuel is the biggest online sportsbook in the US. It is owned by Flutter Entertainment, which has said that it will put the idea of a secondary listing to a shareholder vote in April. Therefore, Flutter Entertainment controls 95% of FanDuel. The company has stated that a formal resolution would be presented before shareholders about the possibility of a secondary listing of its equities on the Nasdaq or the New York Stock Exchange after consulting with investors (NYSE).

At the moment, Flutter shares can only be bought and sold over the counter in the US. Its main listing is on the London Stock Exchange (LSE). A large number of Flutter’s shareholders, who have known the company for a long time and have a lot of shares, have given their strong support. Analysts who have been optimistic about Flutter’s chances of going public in the US are likely to welcome this news. Some experts think that by doing this, the conglomerate discount that is currently holding the company back will be eliminated.

FanDuel Spinoff Plan Not Mentioned in Flutter’s Latest Statement

According to Peter Jackson, CEO of Flutter, the proposal will be made at the upcoming all-group meeting (AGM) on April 27, 2023. The US listing might take place as early as the fourth quarter, provided that a certain threshold of Flutter shareholders approve of it. At the April meeting, they must vote in person or by proxy on the proposed transaction.

He said in a statement that the resolution needs to receive the support of 75% of Flutter shareholders who voted in person or by proxy. If shareholders agree at the AGM, Flutter plans to add the US listing by the fourth quarter of 2023.

If Flutter gets listed on a US exchange, it could get a lot more professional and regular investors and, if needed, make it easier to raise money through debt and equity transactions. Also, switching to a US listing would mean that FanDuel is valued more fairly in the US. Investors in the US might not want it to be split off from the parent company because of this. The company may be kept because it is the leader in online sports betting in the US and is expected to be profitable for the full year in 2023.

Analysts Bullish on Flutter Listing in the US to Remove Conglomerate Discount

Flutter’s statement about the US listing vote on Friday doesn’t mention FanDuel or the previously hotly debated idea of spinning off the US operation to give investors more value. When Flutter first said it would talk to shareholders about the US listing strategy, it said that the transaction would come before any possible FanDuel split.

Finally, Flutter Entertainment will solicit investment next month for a US stock listing. If a certain proportion of Flutter shareholders approve of the US listing, the transfer might take place as early as the fourth quarter. FanDuel may be more accurately valued in the US as a result of Flutter’s anticipated IPO on a US exchange, and investors there might not want it separated from the parent firm. Due to its dominant position in the US online sports betting market and its projected full-year profitability in 2023, the company may therefore be kept.