Amaya Gaming to spin-off lottery subsidiary Diamond Game
Toronto-based gaming giant to float B2B business on Toronto exchange as part of its previously announced intention to divest its B2B assets
Amaya Gaming has revealed it will spin-off its B2B lottery business Diamond Game Enterprises through an initial public offering (IPO) on the Toronto Stock Exchange as it continues to divest of its B2B assets.
Amaya said its decision to spin-off Diamond Game was “consistent” with its previously announced “intention to explore various strategic opportunities” to sell off its entire B2B business in a bid to maximize shareholder value and pay off debt.
The firm purchased Diamond Game back in February 2014 for CA$25m (£13.5m) in a bid to expand its B2B lottery footprint in North America, but following the acquisition of PokerStars and Full Tilt in June 2014 Amaya has been exploring ways to withdraw from the B2B sector.
The firm recently sold its B2B poker network Ongame to NYX Gaming, and under the deal Amaya also made a US$10m (£6.1m) “strategic investment” to expand on its current partnership with NYX subsidiary NextGen Gaming.
The IPO will be for Amaya subsidiary Innova Gaming Group, which it said had been formed in connection with the offering and would hold all the shares of Diamond Game Enterprises.
The Toronto-based gaming giant said it has filed and obtained a receipt for a preliminary prospectus for its proposed flotation with the securities regulatory authorities in Canada.