Compass factors to US as Paddy Power proprietor strains up new chairman

The FTSE-100 playing large behind Paddy Power is lining up a US-based businessman as its subsequent chairman – a transfer that can additional cement plans to desert its presence on the London inventory market.

Sky News has learnt that Flutter Entertainment, which additionally owns SkyGuess and Betfair, is in superior talks to nominate John Bryant to the position.

Mr Bryant, who’s the senior unbiased director at Compass Group, the listed contract catering firm, holds twin Australian and US nationality.

He sits on the boards of two US-based firms – Ball Corporation and Macy’s – and is known to spend nearly all of his time in America.

An individual near the method mentioned Mr Bryant’s appointment was at a complicated stage, however cautioned that it had but to be finalised.

This weekend, it was unclear whether or not different candidates remained in discussions with the group.

Flutter’s annual shareholder assembly takes place later this month, which one investor urged can be a logical time for the corporate to unveil its subsequent chairman.

The £26bn firm, which additionally owns Foxbet and Pokerstars, mentioned in February that it was exploring looking for a US itemizing for its inventory due to the rising significance to the group of FanDuel.

It anticipates the US-based operation changing into its “largest business by revenue and an ever-greater proportion of its overall value”, the corporate mentioned.

Flutter mentioned the transfer would give it entry to “much deeper capital” markets and would allow it to retain American expertise extra simply.

Shareholders will vote on the proposal this month, though the corporate has mentioned “early feedback has been supportive”.

The transfer to optimise its itemizing construction is the brainchild of Peter Jackson, Flutter’s chief govt, who has presided over a steep improve within the firm’s worth.

That progress in earnings and share value has been delivered regardless of the specter of elevated regulatory intervention, with the federal government anticipated to publish draft laws that can embrace a brand new statutory levy later this month.

While Flutter has not explicitly mentioned that it plans to ditch its London Stock Exchange presence, the doubtless transfer to hunt a main itemizing in New York is extensively anticipated to result in that consequence over time.

The firm’s plans have sparked a renewed debate concerning the attractiveness of the London Stock Exchange to multinational firms throughout a drought of sizeable City flotations.

That situation has been introduced into sharp focus by the choice of SoftBank, proprietor of the enormous British chip designer Arm Holdings, to take the corporate public in New York moderately than London, regardless of intensive lobbying by UK authorities ministers.

CRH, the constructing supplies group, has additionally introduced plans to shift its main itemizing from London to New York, whereas it additionally mentioned this week that it will abandon the Irish Stock Exchange.

Other London-quoted firms with vital US operations, together with Pearson, have signalled that they might be open to transatlantic strikes in future.

Sky News reported in January that Flutter had engaged the search agency Russell Reynolds Associates to determine Gary McGann’s successor as chairman.

The search will signify the newest boardroom change at an organization which now ranks among the many 30 largest listed firms in Britain.

Flutter not too long ago named Paul Edgecliffe-Johnson as its new finance chief, changing Jonathan Hill.

Mr McGann joined the Flutter board in November 2014, that means he would now not be deemed unbiased underneath the City company governance code by the tip of this yr.

Andy Higginson, the previous Tesco govt, had been touted as a possible long-term substitute for Mr McGann a number of years in the past however he stepped down from the Flutter board final yr, opting to grow to be chairman of JD Sports Fashion, the retail group.

A Flutter spokesman declined to remark.