Parvus Asset Management becomes third-largest Flutter shareholder

Parvus Asset Management has become the third-largest independent shareholder in Flutter Entertainment after accruing a 7.1% share in the FTSE 100 firm. Flutter informed the market of Parvus’ new holding after the company moved above the 7% threshold on voting rights, which requires public disclosure. Parvus increased its holding from 6.03% to 7.1% via equity swaps, a type of financial derivative that allows investors to swap cash for shares for a determined period of time. Parvus crossed the 7% threshold on 25 May. The London-based firm is led by Edoardo Mercadante, formerly of Merrill Lynch. The fund has previously taken active positions in the likes of William Hill and The Stars Group. Following the transaction, Parvus is now the third-largest independent voting rights holder, behind US pension fund Capital Group, which holds 14%, and private equity group Caledonia Investments with 10%. In a statement, Flutter said: “Parvus Asset Management Europe Limited has been appointed as investment manager to a number of funds. “Under the terms of the various investment management agreements, Parvus Asset Management Europe Limited holds the power to vote any physical shareholdings held by these clients.” Earlier this month, US investment fund Corvex Management acquired a 10.12% share and voting rights position in Kindred Group, which led to a flurry of M&A speculation around the Stockholm-listed operator.