- Gaming and online gambling company, The Stars Group (TSX:TSGI) has received shareholder approval for its combination with Flutter Entertainment plc
- The resulting company would be majority owned by Flutter, with Stars Group shareholders owning the remaining 45.36 per cent
- Based on the two company’s 2018 figures, the resulting company will be the largest online betting and gaming operator globally
- Pending further regulatory approvals, the companies expect the deal to close in May 2020
- The Stars Group (TSGI) is up 2.81 per cent, with shares trading for C$35.48 and a market cap of $10.27 billion
Gaming and online gambling company, The Stars Group (TSX:TSGI) has received shareholder approval for its combination with Flutter Entertainment plc.
Flutter Entertainment is based in Ireland and also operates in the gaming industry, owning the brands Betfair, Paddy Power and Sportsbet, among others.
Through the deal Flutter would acquire The Stars Group in an all-share combination. Stars Group shareholders would be entitled to 0.2253 shares in the new company for every previously owned share.
The resulting company would be majority owned by Flutter, with Stars Group shareholders owning the remaining 45.36 per cent.
Based on the two company’s 2018 figures, when the two companies merge, the resulting company will be the largest online betting and gaming operator globally. The Stars Group and Flutter currently operate in Australia, the UK and Ireland.
Rafael Ashkenazi, CEO of Stars Group, believes this is the logical next step in growth for the company.
“This exciting combination will allow us to enhance and accelerate our existing strategy.
“In recent years, we have transformed The Stars Group from a single product operator in poker, to a diverse global leader with multiple product offerings across poker, gaming and sports betting,” he said.
Rafael went on to say that the combination with Flutter will position the company strongly in a fast-evolving industry.
When the deal was initially announced, Rafael was intended to become Chief Operating Officer in the new company. However, since then the terms of the deal have changed and he will instead act as an advisor to Flutter’s CEO, Peter Jackson.
According to Stars Group, approximately 99.99 per cent of its shareholders agreed to the deal earlier this week. Pending further regulatory approvals, the companies expect the deal to close in May this year.
The Stars Group (TSGI) is up 2.81 per cent, with shares trading for C$35.48 at 3:13am EST.