The Stars Group (NASDAQ: TSG) shares are trading higher after the company announced an all-stock merger with Flutter Entertainment.
The merger will combine two businesses in the sports betting and gaming sector. On completion of the merger, Flutter shareholders will own approximately 54.64% and The Stars Group shareholders would own approximately 45.36% of the share capital of the combined group.
On a proforma basis, the combined group's annual revenue would have been £3.8 billion in 2018, making it the largest online betting and gaming operator globally.
Related Link: The Stars Group Reports Mixed Q2 Earnings, Cuts Guidance
"This is an exciting and transformational combination that will bring together two strong, complementary businesses to create a global leader in the fast-growing online sports betting and gaming industry,” said Gary McGann, chairman of Flutter.
“Under Peter Jackson's leadership we will bring together a management team with the experience required to ensure a successful integration of the businesses, with minimal disruption, during a time of unprecedented change in the sector. The combined group will be a strong voice in the promotion of responsible gaming worldwide and will lead industry standards on the protection of customers, whilst building sustainable relationships with them."
The Stars Group shares were trading up 34.42% at $20.58 in Wednesday’s pre-market session. The stock has a 52-week high of $25.35 and a 52-week low of $12.59.
See more from Benzinga
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.