Stars Group To Acquire Remaining 20% Of BetEasy - Quick Facts

(RTTNews) - The Stars Group Inc. (TSG, TSGI.TO) announced Monday that it has agreed with the minority shareholders of BetEasy, its Australian-based sports betting business, to acquire the remaining 20 percent interest in the company for A$151 million.

As part of this agreement, The Stars Group also agreed to pay A$100 million to settle the previously disclosed performance payment under the agreements for its 2018 acquisition of the initial 80 percent interest.

The Stars Group currently expects to complete the minority acquisition within 90 days following the earlier of either the issuance of The Stars Group's audited financial statements for the year-ended December 31, 2020 or the completion of the previously announced board-recommended all share combination of The Stars Group with Flutter Entertainment Plc.

The purchase price will be settled in cash unless it follows the completion of the combination, in which case Flutter may elect to settle in cash, Flutter ordinary shares or a combination of the same.

In addition to the acquisition of the remaining interest, The Stars Group will settle the performance, or earn-out, payment to the minority shareholders for A$100 million. The performance payment, which could have reached A$232 million, was subject to certain performance conditions primarily related to BetEasy's EBITDA.

Also as part of the agreement, The Stars Group will repay A$56.9 million of outstanding BetEasy minority shareholder loans.