Betfair undergoes £260m bookbuilding ahead of Paddys merger
Co-founder Edward Wray sells off almost £100m of shares but investor interest remains strong
Strong demand from institutional investors has seen 8 million ordinary shares in Betfair sold at £32.50 each in an accelerated bookbuilt offering ahead of the operator’s merger with Paddy Power.
The £260m share sale, which was overseen by Barclays, was on behalf of Le Peigne Sa and parties connected to Betfair co-founder Edward Wray, who has sold almost £100m of his holding.
The initial placing of 7.35 million shares was increased to 8 million following strong demand in a sign which bodes well for investor confidence in a merged Paddy Power Betfair.
Betfair will not receive any of the proceeds of the sale but in a statement both Le Peigne Sa and the Wray shareholders said they remained “very supportive” of Betfair and its proposed merger with Paddy Power, and have agreed to lock-up those shares not sold in the placing for 90 days after closing.
Betfair agreed a mega-merger with Paddy Power in August, which will create a firm with revenues in excess of £1bn if it completes as expected early next year.
Betfair’s share price was slightly up on the placing price to £32.75 this morning.