Paddy Power owner faces £60m break fee if deal fails
Flutter Entertainment, the Paddy Power and Betfair owner, has agreed to pay a £60m termination fee to The Stars Group if it can't secure regulatory approval for the takeover of the Toronto-based group.
The all-share deal, announced earlier this month, will create the world's largest online gaming group, partnered with Fox Sports. Listed in London, it will have a market capitalisation of about £10.5bn.
The Stars Group has also agreed to pay Flutter £60m if the Irish company's shareholders approve the deal but the Canadian firm's shareholders do not.
Details of the agreed break-fees were revealed in stock exchange filings by the Star Group, which is listed in Toronto and New York.
The move by Flutter to buy The Star Group will give the Irish group's presence in America a significant boost, just as more States continue to legalise gaming.
The planned takeover can be terminated by either side if the deal has not been consummated by the end of October next year.
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