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Canada – Amaya increases offer of shares to fund Rational takeover

By - 24 June 2014

Amaya Gaming is upsizing a previously announced offer of convertible preferred shares with the net profits being used to help finance the $4.9bn buy out of the Rational Group, owner of PokerStars and Full Tilt Poker, announced earlier this month.

The size of the offering was increased by $50m to approximately $180m from the previously announced $130m. Amaya expects the offering to close alongside the completion of deal to buy Rational Group deal on September 30.

The Montreal-based group said: “The size of the offering was increased by agreement between Amaya and Canaccord Genuity as sole underwriter, by approximately US$50m to approximately US$180m from the previously announced US$130m. As a result, the total gross proceeds from the issuance of Convertible Preferred Shares will now be US$1,050,000,000. There are no other changes to the previously announced financing. The upsized portion will be offered on the same terms as the previously announced offering of Convertible Preferred Shares. Cannacord Genuity will be paid a fee of five per cent in respect of the upsized portion. Each Convertible Preferred Share has an initial principal amount of C$1,000 and is convertible, at the holder’s option, initially into approximately 41.67 common shares of the corporation based on the conversion price of C$24 per common share, in each case, subject to adjustments including six per cent accretion to the conversion ratio, compounded semi-annually.

It added: “The corporation expects the offering to close concurrently with the closing of the previously announced transaction whereby Amaya has agreed to acquire the Rational Group for an aggregate purchase price of US$4.9bn. The corporation intends to use the net proceeds from the issuance of the convertible Preferred Shares to partially fund the payment of the purchase price for the acquisition of the Rational Group.”

Amaya wants to create the world’s largest publicly traded online gaming company with the Rational deal. Together, PokerStars and Full Tilt Poker are the world’s most profitable online poker brands with more than 85m registered players.

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