US Billionaire Raises Flutter Stake to 27% as CIBC Joins With 5.3%

US Billionaire Raises Flutter Stake to 27% as CIBC Joins With 5.3%

Kenneth Dart has consolidated his position as Flutter Entertainment’s dominant private shareholder, pushing his stake to 27.6% through a combination of direct shareholdings and equity swap arrangements. The move, confirmed by London Stock Exchange filings on 20 May, underscores the continued reshuffling of Flutter’s investor base, now joined by Canadian Imperial Bank of Commerce at a significant 5.3% position.

Dart’s Expanded Control

The American billionaire, operating through his investment vehicle Candle Lake, has methodically built his influence within the online gaming giant. His direct shareholding stands at 18.8%, complemented by 8.8% in voting rights secured through equity swaps administered by Candle Lake’s Cayman Islands-based subsidiary, LBS Ltd. It’s a sophisticated ownership structure, the kind you see among large institutional investors seeking to manage tax and regulatory considerations across multiple jurisdictions.

At Flutter’s current valuation of £12.85bn, Dart’s quarter-stake translates to approximately £3.55bn in market value. His rise comes as Flutter navigates a challenging trading environment. Shares are down more than 55% year-to-date, despite the company’s commanding position across global markets. His holdings span FanDuel’s dominant US operations, the Betfair betting exchange, and regional powerhouses including Sky Bet, Paddy Power, and Italy’s Sisal and Snaitech portfolios.

Institutional Rebalancing

CIBC’s entry represents a notable institutional vote of confidence. One of Canada’s “Big Five” banks has made the move, and the 5.3% position marks the first time the lender has held shares in Flutter. It signals potential appetite for exposure to the company’s international gaming operations at depressed valuations.

The shareholding shifts extend beyond these two anchors. BlackRock has lifted its position above the 5% disclosure threshold, whilst Parvus Asset Management has doubled holdings to 10%. Capital Group, on the other hand, has trimmed exposure from 14.9% to 9.9%. That suggests a more mixed institutional view on near-term prospects.

Management Confidence and Buybacks

Internal buying has accompanied the broader investment moves. Flutter’s Chair John Bryant and group CEO Peter Jackson have both increased their personal shareholdings, whilst departing FanDuel Chief Executive Amy Howe sold a modest 4,711 shares. Such insider transactions typically carry weight with analysts tracking management sentiment.

Flutter is executing a £250m share buyback programme. Part of an ambitious £5bn capital return scheme announced in March, it’s a defensive mechanism aimed at supporting the share price whilst returning cash to shareholders during a period of reduced valuations.

Analyst Optimism Amid Volatility

Despite the year-to-date share price collapse, sell-side analysts maintain constructive outlooks. Macquarie’s £190 price target implies substantial upside from current levels, predicated on Flutter’s robust cash generation and unmatched geographic diversification across regulated markets globally. Such conviction from institutional research teams often precedes institutional repositioning. Particularly when valuations present asymmetric risk-reward propositions.