Lottomatica Acquires Cirsa, Forming World's No.2 Listed Betting Group
Key Details of the Lottomatica and Cirsa Merger
Overview of the Acquisition
Sept 2 (Reuters) - Italian betting firm Lottomatica will take over Spain's Cirsa to create a combined entity whose top shareholder will be U.S. private equity firm Blackstone, the two companies said on Wednesday.
Global Impact and Market Position
• The combined company, to be listed on Euronext Milan and Spanish stock exchanges, will create the second-largest listed gaming and sports betting operator globally, the joint statement said.
Shareholder Structure and Ownership
• Under the plan, Cirsa shareholders will receive 0.668 new Lottomatica share per one Cirsa share.
• Lottomatica shareholders are expected to own 67.5% of the company. Blackstone, Cirsa's main shareholder, will own about 24%, the largest individual stake.
Dividend and Capital Returns
• Prior to the effectiveness of the merger, Cirsa will distribute to its shareholders an extraordinary dividend of €262 million (€1.56 per Cirsa share).
• The merger will create €115 million of pre-tax cash synergies, expected to be realised by the third full year post-completion.
• The combined company is expected to provide
• greater capacity for dividends and share buybacks, with up to €4 billion of capital returns over the three years following the deal.
Corporate Structure and Leadership
• The combined company will retain Lottomatica’s current name.
• The chairman and CEO will be Guglielmo Angelozzi, current chairman and CEO of Lottomatica.
• The board is expected to comprise Lottomatica's current 11 directors plus two new directors nominated by Blackstone.
Headquarters and Integration
• Under the agreement Cirsa will be absorbed by Lottomatica and the company's headquarters will be based in Rome, with secondary headquarters for Cirsa in Barcelona.
Reporting and Editorial Credits
(Reporting by Anna Uras, Francesca Piscioneri and Javi West Larrañaga, editing by Milla Nissi-Prussak and Gavin Jones)
