TLDR
- Kenneth Dart increased his Flutter Entertainment stake to 27.6%, making him the largest private shareholder with a holding worth about £3.55bn
- Canadian Imperial Bank of Commerce acquired a 5.3% stake in Flutter, marking its first position in the company
- Flutter shares have dropped more than 55% this year to $96.36, yet multiple investors have been adding to their positions
- BlackRock lifted its stake above 5%, and Parvus Asset Management doubled its holding to 10%, while Capital Group trimmed its position from 14.9% to 9.9%
- Flutter is currently running a $250 million buyback programme as part of a wider $5 billion plan launched in March
Kenneth Dart, the US billionaire, has raised his stake in Flutter Entertainment to 27.6%. The move makes him the biggest private shareholder in the gambling company.
A filing to the London Stock Exchange on 20 May confirmed the increase. Dart added shares through his investment firm Candle Lake.
His voting rights from equity-based swaps rose from 6.25% to 8.8%. Those swaps are held through Candle Lake’s Cayman Islands unit, LBS Ltd.
Combined with the 18.8% of shares he owns directly, Dart now controls more than a quarter of Flutter’s voting rights. Before this latest purchase, his control stood at 25%.
With Flutter valued at £12.85 billion, Dart’s 27.6% stake is worth roughly £3.55 billion. Flutter owns several major gambling brands including FanDuel in the US, Betfair, Sky Bet, Paddy Power, and Sisal in Italy.
CIBC Becomes One of Flutter’s Newest Institutional Investors
The Canadian Imperial Bank of Commerce has also taken a position in Flutter. The bank acquired a 5.3% stake, according to a filing made on 15 May.
It marks the first time CIBC has held shares in the company. CIBC is one of Canada’s five largest banks, alongside RBC, TD, BMO, and Scotiabank.
The entry of the Canadian bank comes as Flutter’s shareholder base has been shifting quickly. The company is listed on both the London and New York stock exchanges.
Several new investors have taken positions in Flutter in recent months. BlackRock lifted its stake above 5%. Parvus Asset Management doubled its holding to 10%.
Not all moves have been in one direction though. Capital Group cut its position from 14.9% to 9.9%.
Insider Activity Continues Despite Falling Share Price
Flutter’s share price has dropped more than 55% this year, falling to $96.36. Despite that decline, company insiders have been active buyers.
Outgoing FanDuel CEO Amy Howe sold 4,711 shares through JPMorgan. But group CEO Peter Jackson added to his holdings during the same period.
Chair John Bryant and non-executive director Stefan Bomhard also bought more shares. Their purchases signal confidence in the company at current prices.
Flutter is currently running a $250 million share buyback programme. That buyback is part of a larger $5 billion plan the company launched in March.
Analysts have remained positive on the stock despite the sharp decline. Macquarie set a target price of $190, pointing to strong cash flow and Flutter’s reach across global markets.
