The Stars Group Sells Its Entire Stake in Jackpotjoy
The StarsGroup, the owner of the world’s largest online poker site PokerStars, is preparing for future merger and acquisition deals by selling the non-core parts of the company.
Last week, one of the subsidiaries of the Toronto-headquartered company, announced it was seriously considering the option to sell up to a half of its stake in one of the world’s largest bingo operators, the UK-based Jackpotjoy.
Strong Investor Demand
Only a day after this plan was revealed, Jackpotjoy announced the StarsGroup had actually sold off all of its 5.6 million shares in the company.
As the main reason for such a sudden change in plans, the StarsGroup cited a strong investor demand. The transaction earned the StarsGroup a staggering $60.6 million, officially ending the company’s interest in Jackpotjoy.
Back in 2013, the StarsGroup, then known as Amaya Gaming, sold its WagerLogic business to Goldstar Acquisition, which later became Jackpotjoy, after it bought the British company of the same name two years ago. Jackpotjoy announced last week it had secured a new $518.7, which would help the company cut its debts.
Second Major Sale
This is another big sale the company has done recently. A little over a week ago, the StarsGroup sold its entire stake in the Las Vegas-based digital gaming provided NYX Gaming Group to another US company Scientific
Games. A total of 13.7% stake in NYX was sold for a consideration of $28 million.
The Group’s Chief Executive Officer Rafi Ashkenazi recently revealed the company was planning to raise around $2.5 billion to fund merger and acquisition activity. According to him, the StarsGroup future plans include purchasing either one major company or between three and five small-to-medium ones.
Founded in 2001, the StarsGroup is one of the leading gaming and online gambling companies, employing around 1,800 people across four continents.