The Stars Group raises $622 million for SkyBet acquisition

The Stars Group has raised $622 million in a public offering of common shares to help fund its $4.7 billion purchase of Sky Betting & Gaming.The Canadian gaming and online gambling company sold 17 million common shares, while shareholders sold 8 million. Net proceeds, after underwriting discounts and commissions but before estimated expenses of the offering, were about $622 million, the Toronto-based company said in a statement.

By Oliver Rudgewick

The Stars Group made the shares available at $38 a piece for listing on the Nasdaq and Toronto TSX exchanges.

The proposed acquisition of SkyBet and the funding drives are part of Stars Groups' drive to become the most valuable listed online gambling operator. The company provides technology-based products in the global gaming and interactive entertainment industries. Its brands include PokerStars, PokerStars Casino, BetStars, Full Tilt, the PokerStars Players No Limit Hold'em Championship, and the European Poker Tour.

If the SkyBet acquisition does not close, the company intends to use the net proceeds from the offering for general corporate purposes.