Capula takes €65 million positions in CIRSA-Lottomatica merger
Deals & M&A1 min read
Capula Investment Management has taken positions in CIRSA and Lottomatica ahead of their proposed merger, reportedly seeking to benefit from a difference in their share prices and the exchange value. Its declared CIRSA exposure is about €30 million, while its short position in Lottomatica is valued at about €35 million; the integration is planned for Q2 2027, subject to approvals.
Capula Investment Management has reportedly taken positions in CIRSA and Lottomatica ahead of their planned merger. The arbitrage strategy seeks to benefit from differences between the companies' share prices and the value resulting from the deal.
Through Capula Multi Strategy Master Fund, Capula declared exposure to 1.015% of CIRSA through financial instruments, valued at about €30m, according to CNMV records. It holds a 0.5% short position in Lottomatica, valued at about €35m.
The merger agreement provides for an exchange of 0.668 Lottomatica shares for each CIRSA share. CIRSA is considering an extraordinary dividend of €1.56 per share, subject to the conditions set out. Blackstone, CIRSA's majority shareholder, supports the deal.
Shareholder meetings have been called for 23 November at Lottomatica and 30 November at CIRSA. The integration is planned for Q2 2027, provided the necessary approvals and authorisations are obtained.