Hong Kong investor now second biggest shareholder in The Stars Group

Our readers may remember that around the middle of last year a little known Hong Kong investor, Tang Hao, used his Discovery Key Investments company to gobble up a growing number of shares in The Stars Group (then Amaya Gaming), investing hundreds of millions of dollars in buying up lots, some reportedly from stock sold off by disgraced Amaya executive David Baazov.

Business press reports from Canada Monday indicate that the Hong Kong mogul is still splashing the cash around in acquiring TSG stock, and has now acquired a 17.9 stake in the online gambling giant, making Discovery the second-largest shareholder of common shares in TSG.

With 26,455,200 common shares, Discovery trails only Caledonia Investments, which holds 29,353,153 shares.

Hao has certainly attracted the attention of TSG management, judging by reports that the two companies have inked an agreement regarding a Discovry “observer” to sit in on TSG board meetings in the person of Melvin Yanmin Zhang.

Once he and Hao have obtained the necessary licenses and clearances the plan is apparently for them to become members of the board.

There has been so far unconfirmed speculation that Hao might be the same Asian investor who backed Baazov in an abortive earlier deal (quashed by other interested parties) to acquire Amaya. That possibly namesake headed Goldenway Capital, whom Baazov claimed was supporting his bid.

For now, TSG seems unperturbed by the situation, with a spokesman noting:

“Mr. Tang will not acquire greater than 20 percent 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.”

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