The Stars Group has announced that the Ontario Superior Court of Justice ruled in its favour with respect to the previously announced application filed by Polar Multi-Strategy Master Fund (and certain affiliated funds) and Verition Canada Master Fund regarding the pending mandatory conversion of all of its outstanding convertible preferred shares pursuant to their terms.
The news comes in the aftermath of Stars Group’s $4.7 billion acquisition of Sky Betting and Gaming.
The Court dismissed the application by the applicants for a declaration that the mandatory conversion would contravene The Stars Group’s articles of continuance.
In a statement, the group told investors: “As a result of the ruling, The Stars Group will proceed with closing its previously announced conversion of all its outstanding convertible preferred shares pursuant to their terms on July 18, 2018.
“All the preferred shares outstanding as of July 18, 2018 will be converted at a rate of approximately 52.7085 common shares per preferred share, resulting in the cancellation of all the preferred shares and termination of all rights associated therewith.
“With an anticipated 986,551 preferred shares outstanding as of July 18, 2018, the mandatory conversion is expected to result in the issuance of approximately 52.0 million common shares.”
Stars CEO Rafi Ashkenazi said of the previous Sky acquisition: “This acquisition represents a pivotal moment in The Stars Group’s evolution.”