Stars Group, FOX Sports Announce Wagering Partnership; Fox To Invest In Stars

(RTTNews) - The Stars Group Inc. (TSG, TSGI.TO) and FOX Sports, a unit of Fox Corp. (FOXA, FOX) announced a national media and sports wagering partnership of up to 25 years in the United States. Fox will also acquire 14,352,331 newly issued common shares in The Stars Group, representing 4.99% of The Stars Group's issued and outstanding common shares, at a price of $16.4408 per share. As per the terms of the agreed deal, prior to the tenth anniversary of the commercial agreement, FOX Sports has the right acquire up to a 50% equity stake in The Stars Group's U.S. business.

The Stars Group and FOX Sports plan to launch FOX Bet, which will allow customers to place money wagers on the result of sporting events. FOX Sports will grant to The Stars Group an exclusive license for the use of certain FOX Sports trademarks for a range of games and online sports wagering.

The Stars Group plans to use the proceeds of approximately $236 million for general corporate purposes and to prepay outstanding indebtedness on its first lien term loans.

Shares of The Stars Group Inc. were up more than 20% after hours.