Canada’s Stars Group buys Sky Bet for $4.7 billion

Canadian gaming company, The Stars Group Inc. (TSGI.TO), has reached an agreement with CVC Capital Partners and Sky PLC (SKYB.L) for the outright purchase of Sky Betting and Gaming , in a deal worth $4.7 billion.

It had been expected that private equity firm CVC, which was holding 80% equity in the online betting site Sky Bet, would list the company publicly It was even reported in February that CVC had initiated the proceedings for an initial public offering.

However, on Saturday, The Stars Group announced the new development, which the company said would create the world’s largest publicly-listed online gaming firm.

“The acquisition of Sky Betting and Gaming is a landmark moment in The Stars Group’s history,” its chief executive officer Rafi Ashkenazi said.

The deal comprises $3.6 billion in cash and the rest in newly-issued shares.

British media company Sky said it would get around 425 million pounds ($595 million) in cash and shares worth around 145 million pounds, in exchange for its 20% stake in Sky Bet.

Source: reuters.com