Stars Group Enters Into Agreement With Tang Hao; Appoints Observer To Board

(RTTNews) - Stars Group Inc. (TSG, TSGI.TO) said it has entered into an agreement with Tang Hao and his affiliated entity Discovery Key Investments Limited, which currently hold 26.46 million common shares of the company, representing about 17.9 percent of the outstanding common shares of Stars Group.

In connection with that agreement, Melvin Yanmin Zhang has been appointed as an observer member of the board of directors of Stars Group as a nominee of Tang, effective immediately.

Zhang will serve as an observer until such time as he and Tang have received certain licenses and approvals from certain of Stars Group's gaming regulatory authorities, at which point he will join the board of directors as a director.

Pursuant to the agreement, 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 Stars Group's shareholders and the date on which his direct and indirect ownership of Stars Group's issued and outstanding common shares falls below 10 percent.

The agreement also provides for certain standstill restrictions that will remain in effect until January 1, 2019 and that Tang will not acquire more than 20 percent of the outstanding common shares of Stars Group prior to the 2020 AGM, other than by way of a negotiated transaction approved by Stars Group board of directors or by way of formal takeover bid for all of the outstanding common shares of Stars Group.