The Stars Group subsidiary offloads stake in Jackpotjoy
The Stars Interactive Holdings subsidiary of The Stars Group has sold its entire stake in Jackpotjoy in order to increase the size of its share placing.
The company, which operates as an indirect subsidiary of Stars Group, held 5.6 million shares in Jackpotjoy, which represents 7.5% of the entire business.
However, as confirmed by Alliance News, Stars Interactive Holdings has opted to sell off its stake at a price of 820 pence per share, amounting to an overall value of £45m (€51.2m/$60.9m).
In a statement, Stars Interactive Holdings said that it went ahead with the sale in order to satisfy strong investor demand to enhance the size of its share placing.
Jackpotjoy will not receive any proceeds from the Stars Interactive Holdings sale.
The move comes after Jackpotjoy earlier this week also agreed a £388.5m senior secured term and revolving credit facility.
The arrangement includes a £375m equivalent term loan and a £13.5m revolving credit facility, with proceeds from the term facility being used to repay existing first and second lien term loans.
Jackpotjoy said the new facilities should be complete by mid-December, at which point its annual cash interest payments will be reduced by approximately a third, or more than £9m in the first year.
Related article: Jackpotjoy details £388.5m senior secured term, credit facility