Capula Acquires Just Over 1% Stake in Cirsa

✦ Meridian Analysis

Capula Investment Management has signed a transaction to acquire just over 1 % of Cirsa’s share capital, a stake valued at roughly €30 million, and simultaneously disclosed a short position of about 0.5 % in Lottomatica worth €35 million. The hedge fund’s filing with the CNMV makes clear that the moves are not independent but part of a merger‑arbitrage play on the pending Cirsa‑Lottomatica integration, where Cirsa shareholders will receive 0.668 new Lottomatica shares plus a €1.65 dividend per share. By buying Cirsa at a price that reflects the merger premium (≈ €20.78 per share versus the current €20.30 market price) and shorting Lottomatica, Capula is betting that Cirsa’s stock will outperform Lottomatica’s until the deal closes. The mechanics involve a long equity position in the target, a short in the acquirer, and potentially leveraged financing to amplify returns, a structure common among funds that specialise in corporate‑event arbitrage. Blackstone, Cirsa’s majority shareholder with a 72 % stake, has publicly backed the integration, while Lottomatica’s shareholders must approve the transaction at a meeting scheduled for 23 November. Market participants will watch the 23 November shareholder vote, any regulatory feedback from the CNMV, and the evolution of the price differential between Cirsa and Lottomatica to gauge the profitability of Capula’s position.

The Meridian Weekly