Supporting its current merger schedule, the board of The Stars Group Inc (TSG) has revealed that independent advisories’ ISS Governance and Glass Lewis have approved deal terms backing a multibillion-pound combination with Flutter Entertainment.
ISS and Glass Lewis were appointed by TSG investors to act as independent institutional advisors, undertaking due diligence of deal terms for the benefit of TSG shareholders.
Concluding separate reviews, both ISS and Glass Lewis have recommended Flutter’s proposed all-share combination, which will see the two form a new business entity valued at $11 billion.
TSG investors will vote on the merger combination on 24 April (10 am), as Flutter maintains its deal timetable, seeking to formally complete the transaction by H2 2020.
This April, the UK Competitions and Markets Authority (CMA) granted its ‘phase-1 approval‘ of the Flutter-Stars deal, allowing the companies to merge.
Approving the combination, the CMA stated that the deal would have no material impact on consumer choice within UK betting.
The CMA has yet to conclude its ‘phase-2’ inquiry, in which the authority will examine marketplace dynamics, evaluating a merger that will take-up a 40% share of UK online betting -– significantly above the CMA’s 25% regulatory guidance.
Following the CMA’s approval, Flutter has issued investors with an update on merger directives, detailing executive team and governance changes forming a new business entity.
Both Flutter and TSG have confirmed that a new merger prospectus will be published prior to shareholder voting taking place.
Source: SBC News
