Canadian-based online poker giant The Stars Group, operator of global poker sites PokerStars and Full Tilt, has entered into an agreement with substantial shareholder Tang Hao that will see Macau and Philippines casino investor Melvin Yanmin Zhang become an observer member of the board.
Hao, who currently holds 26,455,200 shares in The Stars Group through his affiliated entity Discovery Key Investments Limited, representing approximately 17.9% of common shares, has named Zhang as a nominee with the latter to join the board as a director once the relevant licenses and approvals are granted by gaming authorities.
Zhang is best known as an Executive Director of Hong Kong-listed International Entertainment Corp, which owns and operates Hyatt Hotel and Casino in Manila. It also previously held a 40% stake in Arc of Triumph Development Company, owner of L’Arc Macau.
As part of the agreement, Tang will continue to hold the right to nominate a director to the board of directors until either the day following The Stars Group’s 2020 annual general meeting or prior should his stake in the company fall below 10%. Tang is forbidden from increasing his stake over 20% until the 2020 AGM unless through a negotiated transaction approved by The Stars Group board of directors, or by way of a formal takeover bid for all of the company’s outstanding common shares.
In a statement, The Stars Group Chairman Dave Gadhia said, “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.”