Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, February 14, 2020

Article Excerpt

THE STARS GROUP INC., $30.95, symbol TSGI on Toronto, owns online and mobile gaming brands PokerStars, PokerStars Casino, BetStars, Full Tilt, and FOX Bet. Formerly known as Amaya, the company (TSG) is now the biggest publicly listed online gambling provider after paying $4.7 billion (all figures in U.S. dollars) for U.K.-based Sky Betting & Gaming in April 2018. On October 2, 2019, TSG announced it had accepted a $6 billion takeover offer from Flutter Entertainment PLC (symbol PDYPY on the U.S. Over-the-Counter Market). That Irish gaming company’s online betting sites include Paddy Power and Betfair. Flutter also owns 61% of FanDuel, one of the leading fantasy sports companies operating in the U.S. Together, it and TSG reported a combined $6.2 billion in revenue for 2018. When completed, the all-stock takeover will see TSG shareholders receive 0.2253 shares in Flutter for every TSGI share they currently hold. Under those terms, Flutter shareholders will hang onto 54.6% of the combined company, with TSG investors…

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