Stars Group to Raise $2.5 Bn for Acquisitions & Mergers

The Stars Group logoStars Group Inc which is the owner of online poker giant PokerStars recently announced that the company is looking forward to raising an amount of $2.5 billion to fund the future merger and acquisition. They are more than confident that they would be able to build the funds without any hassles.

There has been an increase of 21.7% in revenue on year on year basis with a strong performance in the 3rd quarter. The net earnings for the company have increased by 505.9%, and within a time span of 1 year, the debt of Stars Group Inc has diminished by $515 million.

A detailed report has been released by the company showing that Stars Group has existing cash of $255 million which shows that financial leverage of the company is in a better state to venture into international mergers and acquisitions.

Rafael Ashkenazi who is the Chief Executive Officer of Stars Group said they are talking with the potential partners and are working to grow by buying 3-5 small companies or 1 big company. No possible names have been revealed so far, but according to some rumours, it is presumed that United Kingdom bookmaker William Hill might be one of the companies that would be purchased by Star Group.

Earlier Star Groups was known as Amaya Inc, and it had entered into the talks of purchasing William Hill. Due to the merger, 5 billion pounds bookmarker would have been created to operate in several nations across the globe. Both the companies withdrew from the alliance because of disapproval from Parvus Asset Management which is the most significant investor of William Hill. Parvus was of the opinion that Amaya had a debt of $3.5 billion which would have caused an unwanted burden on the profitability of William Hill.

Amaya was renamed as Star Group in May 2017, and Rafael was named as the CEO after a major management reshuffle. Rafael took the reins of the company after David Baazov who is the founder stepped down from his post due to some trading charges.

After Rafael assumed his position as the CEO of the company, his three primary objectives were to minimise the outstanding debt, expanding the company beyond poker and focus on mergers and acquisitions. Till now, Stars Group has been able to pay off much of its debt, and the online casino and book offerings are going from strength to strength. It seems that the company is all set to fulfil its 3rd and the most critical objective.

Rafael Ashkenazi made the following statement in a press conference:

To build upon these achievements, we plan to focus on reinvesting in our core products and increasing our investment in marketing for the remainder of 2017 and into 2018 while continuing to explore further growth opportunities.

Jay Stevens

Jay Stevens

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