Online betting firm Stars Group has announced that they're planning to fund their purchase of Sky Betting & Gaming using common shares.
The announcement comes two months after the company came to a $4.7 billion purchase agreement with Sky Bet parent company CVC Capital Partners. The company initially said that they would fund the purchase with stock and cash, with $3.6 billion coming from straight tender. Now the company is offering 15 million common shares, as well as an additional 6 million common shares contributed by certain shareholders. The company will also give underwriters the ability to purchase up to 15% more common shares sold via the offering.
The company's press release on the matter read in part: "The Stars Group intends to use the net proceeds from the treasury offering, together with debt financing and cash on hand to fund the previously announced acquisition of Sky Betting & Gaming (the "Acquisition"). The Offering is not contingent on the closing of the Acquisition or any debt financing. If for any reason the Acquisition does not close, the Company intends to use the net proceeds from the Offering for general corporate purposes."