Gambling group Flutter raises 812 million pounds in share placement

DUBLIN, May 29 (Reuters) - Paddy Power, Betfair and Poker Stars owner Flutter Entertainment has raised 812 million pounds via a share placement that will see U.S. media group Fox Corp increase its investment in the world’s largest online betting group.

Flutter said on Thursday that the 8 million new shares would be placed with institutional investors via an accelerated book build to speed up growth in the fast growing U.S. market and finance cost savings arising out of the coronavirus crisis.

The placement came three weeks after Flutter completed its $6 billion merger with Stars Group Inc (TSG) that also added the Sky Bet brand to the group.

The Irish betting group said on Friday that it was pleased by the strong support it had received from new and existing shareholders in the placing, without giving details.

Flutter said in its statement on Thursday that Fox, which bought a 4.99% stake in Stars in May last year for $236 million, would increase its investment in Flutter as part of the placement but did not say how many shares it was acquiring.

Flutter said on Thursday that its revenue in the second quarter so far has increased by 10% from a year earlier, despite widespread ongoing disruption to global sports. ($1 = 0.8106 pounds) (Reporting by Padraic Halpin; Editing by Kirsten Donovan)