Amaya has said that it expects to raise approximately CAD$34m through the sale of a 60 per cent stake in its lottery and gaming business Diamond Game Enterprises, through the initial public offering of Innova Gaming Group.

Innova Gaming Group’s IPO is expected to raise gross proceeds of $49m, with Amaya’s $34m stake excluding the exercise of the underwriters’ overallotment option.

The newly formed company has filed its prospectus with Canadian securities regulators and is to be listed on the Toronto Stock Exchange.

The spin-off effectively sees the divestiture process, first announced in January this year, completed, with the PokerStars owner’s remaining B2B assets all sold off, or in the process of being sold off.

In the first quarter of the year its land-based gaming machine business Cadillac Jack was sold off for $382m to American Gaming Systems, and its online casino subsidiaries Amaya (Alberta) Inc - formerly Chartwell Technology and Cryptologic - were acquired by NYX Gaming Group for $150m.

Its poker network, Ongame, was also sold to NYX in November last year.

Amaya said that it plans to use the net proceeds from the divestitures to repay certain indebtedness as it looks to reduce its Anticipated Net Leverage Ratio to the range of 4.0 to 4.5 by December 31st this year, and to fund the repurchase of its common shares pursuant to its normal course issuer bid.

Amaya also revealed that it expects revenue for the first quarter to be in the range of $336m to $342m, including approximately $333m to $337m from Amaya's core B2C business, namely PokerStars and Full Tilt.

If Diamond Game and Cadillac Jack revenue were included, the company would have expected revenue in the range of $363m to $374m.

Amaya intends to release its Q1 financial results on Thursday May 14th.

Shares in Amaya Inc. (Co. Data) (TSX:AYA) closed in Toronto Monday up 1.58 per cent at CAD$28.92 per share.