TORONTO, Jan. 10, 2018
/CNW/ - The Stars Group Inc. (Nasdaq: TSG; TSX: TSGI) announced
today that it has entered into an agreement with Mr. Tang Hao and
his affiliated entity Discovery Key Investments Limited, which
currently hold 26,455,200 common shares of the Company,
representing approximately 17.9% of the outstanding common shares
of The Stars Group. In connection with that agreement,
Melvin Yanmin Zhang has been
appointed as an observer member of the board of directors of The
Stars Group as a nominee of Mr. Tang, effective
immediately. Mr Zhang will serve as an observer until such
time as he and Mr. Tang have received certain licenses and
approvals from certain of The Stars Group's gaming regulatory
authorities, at which point he will join the board of directors as
a director.
"We welcome Tang Hao's significant investment in The Stars Group
as one of its largest shareholders, and look forward to
Melvin Zhang's contributions at the
board as we continue our focus on expanding into new markets,"
commented Divyesh (Dave) Gadhia,
Chairman of The Stars Group board of directors.
Pursuant to the agreement, Mr. Tang will continue to hold the
right to nominate a director to the board of directors, subject to
certain conditions, until the earlier of the day following the 2020
annual general meeting of The Stars Group's shareholders and the
date on which his direct and indirect ownership of The Stars
Group's issued and outstanding common shares falls below 10 percent
(on a non-diluted basis). The agreement also provides for certain
standstill restrictions that will remain in effect until
January 1, 2019, and provides as well
that Mr. Tang will not acquire greater than 20% of the outstanding
common shares of The Stars Group prior to the 2020 annual general
meeting of shareholders other than by way of a negotiated
transaction approved by The Stars Group board of directors or by
way of formal takeover bid for all of the outstanding common shares
of The Stars Group.
Mr. Zhang has over 30 years of management experience across a
range of industries, and is currently an Executive Director of
International Entertainment Corp., a Hong
Kong-based real estate developer with interests in casino
and entertainment properties across Asia. Mr. Zhang has a
bachelor's degree from Sun Yat-sen
University in Guangzhou, China and
a master's degree from Oklahoma State University.
About The Stars Group
The Stars Group is a leading provider of technology-based
products and services in the global gaming and interactive
entertainment industries. Through its Stars Interactive Group
division, The Stars Group ultimately owns gaming and related
consumer businesses and brands, including PokerStars, PokerStars
Casino, BetStars, Full Tilt, and the PokerStars Festival,
PokerStars MEGASTACK, PokerStars Caribbean Adventure, European
Poker Tour, Latin American Poker Tour and the Asia Pacific Poker
Tour live poker tour and event brands. These brands together have
more than 115 million registered customers globally and
collectively form the largest poker business in the world,
comprising online poker games and tournaments, sponsored live poker
competitions, marketing arrangements for branded poker rooms in
popular casinos in major cities around the world, and poker
programming and content created for television and online
audiences. The Stars Group, through certain of these brands, also
offers non-poker gaming products, including casino, sportsbook and
daily fantasy sports. The Stars Group, through certain of its
subsidiaries, is licensed or approved to offer, or offers under
third party licenses or approvals, its products and services in
various jurisdictions throughout the world, including in
Europe, both within and outside of
the European Union, the Americas and elsewhere. In particular,
PokerStars is the world's most licensed online gaming brand,
holding licenses or related operating approvals in 17
jurisdictions.
Cautionary Note Regarding Forward Looking Statements and
Other Information
This news release may contain forward-looking statements and
information within the meaning of applicable securities laws,
including with respect to the appointment of Mr. Zhang as an
observer to the board of directors and the agreement entered into
with Mr. Tang and his affiliated entity. Forward-looking statements
can, but may not always, be identified by the use of words such as
"anticipate", "plan", "continue", "estimate", "expect", "may",
"will", "intend", "could", "might", "would", "should", "believe",
and similar references to future periods or the negatives of these
words and expressions. These statements are based on management's
current expectations and are subject to a number of risks,
uncertainties, and assumptions. There can be no assurance that
actual results will not differ materially from those expressed or
implied in forward-looking statements. Undue reliance should not be
placed on forward-looking statements. Please refer to The Stars
Group's most recent annual information form and annual and interim
financial statements and management's discussion and analysis for
more information about the factors, assumptions and risks that may
apply to The Star's Group's forward-looking statements. Each
forward-looking statement speaks only as of the date hereof, and
The Stars Group undertakes no obligation to correct or update any
forward-looking statement, whether as a result of new information,
future events or otherwise, except as required by applicable
law.
SOURCE The Stars Group Inc.