Canada's The Stars Group Inc., formerly Amaya Inc., has filed a preliminary prospectus supplement for the sale of its common shares.
The proceeds of the sale will fund its previously announced purchase of British gambling company Sky Betting & Gaming from CVC Capital Partners Ltd. and Sky PLC.
According to an SEC filing dated June 18, the transaction will include a treasury offering for 15,000,000 common shares by the company and a secondary offering of 6,000,000 common shares by selling shareholders.
The company said the offering will be priced in the context of the market with the price and total size of the offering, which will be determined at the time of entering into an underwriting agreement.
The underwriters for the offering — represented by Morgan Stanley, J.P. Morgan and Deutsche Bank Securities Inc. — will be granted an over-allotment option to buy up to an additional 15% of the common shares to be sold pursuant to the offering.
The Stars Group said if the $4.7 billion Sky Betting deal fails to proceed, it will instead use the net proceeds for general corporate purposes.