According to Reuters, the parent company of some of the most successful betting and gaming brands worldwide is considering the new US listing as a means of supporting its further expansion in the country.
The US Listing to Yield Long-Term Benefits
In a statement issued by the London-listed company running its operations in over 20 regulated markets, its board has outlined the positive impact of a potential listing on the US stock exchange market. As per data from the preliminary report, Flutter Entertainment’s ordinary shares are expected to “yield a number of long-term strategic and capital market benefits,” a statement issued by the company reveals.
Among the benefits, Flutter mentioned getting access to better capital markets along with more important domestic investors, reaching US indices, strengthening its profile in the country, and enabling enhanced talent recruitment and retention. Flutter also mentioned additional advantages of a potential listing of ordinary shares in the US, such as greater overall liquidity in its shares and the option to pursue them.
The Dublin-based company that hit the refresh button on its strategic priorities in 2021 is set to initiate its shareholder consultations in the shortest time possible before announcing any formal proposals.
Flutter’s board considered the topic an “important” one for its shareholders while expressing its intentions to consult with them in an extensive manner prior to establishing if they should initiate a formal resolution that would ask for official approval.
Provided the proposal will receive “broad shareholder support,” this would take precedence over the plans to list a small shareholding in the FanDuel brand. The decision was rushed by the US FanDuel brand’s transformation into its largest business revenue-wise. According to the same note issued for shareholders, the group explained that FanDuel could turn into their largest business by value and revenue should the current trends keep going.
Determined to keep providing and defending “gold medal positions in existing businesses” while continuing to cultivate an innovative mindset that would help it profit from future opportunities, Flutter has set four new pillars as part of its new strategy: Grow, Invest, Build, and Future.
The group, which is a responsible worldwide leader that puts sustainability at the core of all of its actions, has also launched a brand new sustainability strategy called the Positive Impact Plan.
Flutter will make the results of the consultation known in due course. Last December, the company announced responsible gambling would remain a key priority for them.
At the start of the year, a report showed that the group might be on the look for a new executive chairman to replace Gary McGann.