One of the last vestiges of The Stars Group as an actively market-traded entity will vanish in less than two weeks. Flutter Entertainment Plc, the parent company of PokerStars and many other prominent gambling brands, has issued a final notice to any remaining shareholders of The Stars Group (TSG) to convert their remaining shares of TSG into Flutter (FLTR) by May 4, 2023, after which point any unconverted shares of ordinary TSG stock will become worthless.
Flutter acquired The Stars Group, which was earlier known as Amaya, in a merger that was finalized on May 5, 2020 after many months of negotiations. The merger language calls for all outstanding TSG shares to be converted into Flutter shares by “three years less one day” from the original merger deal taking effect, or by May 4, 2023.
Flutter’s recent warning to any remaining TSG shareholders to “urgently” initiate the conversion process did not indicate exactly how many shares of TSG stock remain unconverted. According to the merger’s financial fine print, each share of TSG is exchangeable for 0.2253 shares of FLTR. FLTR currently trades at just under US $100/share, meaning each unconverted TSG share is worth a little over $22, at least for the next 10 days. “Unclaimed Flutter shares will be lost,” the company stated.
Most of the remaining unconverted TSG stock likely comes from the 2014-2020 Amaya/TSG era, when that company’s stock was publicly traded on several indices. There is a small chance that some amount of TSG shares could actually be traced to the original Rational Enterprises era of PokerStars, which in turn dates back to the online site’s creation in the early 2000s.
Featured image source: Flutter Entertainment plc