Paddy Power Betfair merger spurs ‘record’ share2016-01-16 13:13:52
Today the merger of Paddy Power and Betfair will take effect. Yesterday, the first signs of how significant this merger is, manifested itself in investors rushing to the Irish Stock Exchange. The business, which will be known as Paddy Power Betfair, will be the biggest listed online betting and gambling company.
Traders expected heavy interest in shares but miscalculated the demand by several million shares. The expected interest of 3.8 million shares was surpassed by several million.
Paddy Power shares gained in value by almost 4 %, closing at €142.75 on the last day trading under that name. Paddy Power shares will trade under the new entity on the Irish Stock Exchange and the London Stock Exchange.
The merger, which was approved in December 2015 by shareholders in Dublin, brings Paddy Power shops to a total of 336 in the UK and 252 stores in Ireland.
However, with 80 % of their combined annual revenue coming from online business, the brick-and-mortar business forms the smaller part of the business. Presence on the high street is, however, a crucial asset to the brand-aware company.