The Stars Group Incorporated Sell Its Shares to Fund the Sky Betting Acquisition
The Canadian gaming and online gambling company The Stars Group has announced that it has secured more money needed to complete the acquisition of Sky Betting and Gaming, one of Britain’s biggest sports betting operators.
The deal between The Stars Group and Sky Betting and Gaming’s owners, CVC Capital Partners and Sky, was reached back in April, when the two sides announced the transaction would be worth $4.7 billion.
An Important Move
Under the provisions of the deal, The Stars Group will have to pay $3.6 billion in cash while the rest of the payment will come in the form of newly-issued shares.
That’s a serious amount of money, and that’s why The Stars Group has decided to acquire additional funds through the sale of its common shares. Now, the Toronto-headquartered gaming giant, owner of PokerStars and FullTilt virtual brands, has announced the public share offering has been successfully completed.
According to a press release, The Stars Group sold around 25 million common shares – 17 million were sold, while 8 million were offloaded by the Group’s stakeholders. With a price of $38 per single share, The Stars Group raised a total of $622 million, which are now to be used “together with debt financing and cash on hand” to fund the aforementioned purchase of Sky Betting and Gaming.
The press release issued by The Stars Group stated that if any the acquisition did not close, the company would use the net proceeds from the offering for general corporate purposes.
The release also said The Stars Group Incorporated intended to use the net proceeds from the offering together with the company’s previously announced equity offering, bank financing and cash on hand to fund the previously announced acquisition of Sky Betting and Gaming.
Expanding Its Presence in the UK
In addition to this sale, The Stars Group has announced that it plans to raise around $750 million through an unsecured private loan offering. According to available information, the notes will exclusively be sold to buyers in the United States, and will be due in 2026.
Commenting on the Sky Bet acquisition, The Stars Group Chief Executive Officer Rafi Ashkenazi said the move represented a landmark.
The Stars Group CEO Rafi Ashkenazi described the Sky Bet acquisition as a landmark moment in the company’s history, saying the deal would create the world’s largest publicly-listed online gaming firm.
The move should be completed during the third quarter of this year, and will increase the company’s presence in regulated markets such as the United Kingdom.
Founded in 2001 as Amaya Incorporated, The Stars Group has changed its name last year and moved its headquarters from Montreal. The company produces and offers online gaming products and services including poker, casino and sportsbook through its online gaming division – Stars Interactive. The list of its online brands includes PokerStars, PokerStars Casino, BetStars and Full Tilt Poker.
The company’s online gaming division has licences to operate from 17 jurisdictions and offers its products and services in Europe, North America and elsewhere.