Rafi Ashkenazi to no longer assume COO role in TSG/ Flutter merger
Ashkenazi will instead act as strategy and integration consultant to merged business as Flutter suspends 2020 dividend
The Stars Group (TSG) chief executive Rafi Ashkenazi will no longer become COO of the combined TSG and Flutter Entertainment business.
Ashkenazi will instead act as a consultant to the combined business, advising on integration issues and TSG business strategy after the acquisition completes.
As part of the arrangement, Ashkenazi will join the board of the combined Flutter/TSG business in a non-executive capacity, alongside former Sky Betting & Gaming CEO Richard Flint.
Flutter has said the change follows “extensive discussions” about the make-up of the senior executive team of the new business in respect of several undisclosed personal considerations.
Flutter Entertainment CEO Peter Jackson reiterated his commitment to the merging of the two businesses, saying he was convinced more than ever of the “strategic fit” between the two firms.
“I am delighted that Rafi has agreed to join the Flutter board and to be available to me as a consultant given his extensive knowledge of Stars’ international business,” Peter Jackson said.
“We continue to work with various competition and anti-trust authorities globally to secure the few remaining approvals required. We do so while never losing sight of our current primary objective to ensure the safety of our staff and customers during these unprecedented times,” Jackson added.
In addition, the businesses have confirmed that following the Covid-19 outbreak, the combined group board will be made up of 15 directors until the end of 2020, in order to keep a “wide range of expertise” within the business in the immediate future.
Proposed directors of the business include Ashkenazi, TSG executive chair Divyesh Gadhia, Alfred Hurley, David Lazzarato, and Mary Turner.
Each of the proposed directors will become non-executive directors of Flutter Entertainment, with Gadhia assuming the role of deputy chair of the board of directors.
Flutter has confirmed that existing non-executive directors Jan Bolz and Emer Timmons will step down on completion of the TSG acquisition.
The operator has also said current senior independent director and chair of the nomination committee Ian Dyson will step down after the firm’s 2020 AGM, with Andrew Higginson assuming those positions.
In addition, Flutter’s board of directors has proposed its final 2019 dividend to shareholders be paid in the form of ordinary shares, while a pro-rated dividend which had been payable on completion of the TSG acquisition will now not be paid. The operator has also suspended its dividend for 2020.
Flutter confirmed the agreement of new debt arrangements made earlier this month giving the company access to a term loan and revolving credit facility totalling $1.6bn.
The operator said these funds will be made available to refinance existing Flutter and TSG debt and with the aim of providing ongoing financial flexibility.