The Stars Group Inc. has announced today that it has entered into an agreement with Mr. Tang Hao and his affiliated entity Discovery Key Investments Limited.
Mr. Tang Hao currently holds 26,455,200 common shares of the Company, representing approximately 17.9% of the outstanding common shares of The Stars Group.
In connection with that agreement, Melvin Yanmin Zhang has been appointed as an observer member of the board of directors of The Stars Group as a nominee of Mr. Tang, effective immediately. Mr Zhang will serve as an observer until such time as he and Mr. Tang have received certain licenses and approvals from certain of The Stars Group’s gaming regulatory authorities, at which point he will join the board of directors as a director.
Divyesh Gadhia, Chairman of The Stars Group board of directors commented: “We welcome Tang Hao’s significant investment in The Stars Group as one of its largest shareholders, and look forward to Melvin Zhang’s contributions at the board as we continue our focus on expanding into new markets.”
Mr. Tang will continue to hold the right to nominate a director to the board of directors, subject to certain conditions, until the earlier of the day following the 2020 annual general meeting of The Stars Group’s shareholders and the date on which his direct and indirect ownership of The Stars Group’s issued and outstanding common shares falls below 10 percent (on a non-diluted basis).
The agreement also provides for certain standstill restrictions that will remain in effect until January 1, 2019, and provides as well that Mr. Tang will not acquire greater than 20% of the outstanding common shares of The Stars Group prior to the 2020 annual general meeting of shareholders other than by way of a negotiated transaction approved by The Stars Group board of directors or by way of formal takeover bid for all of the outstanding common shares of The Stars Group.
Mr. Zhang has over 30 years of management experience across a range of industries, and is currently an Executive Director of International Entertainment Corp.