SBC News Voice of the Sports Betting Industry
David Baazov the former Chief Executive Officer of Amaya Inc, has penned a reported CAD $3.5 billion (US $2.56 billion) offer to acquire the Toronto TSX-listed operator outright.
Baazov who is currently facing charges of insider trading by Quebec’s securities regulator Autorité des Marchés Financiers (AMF) makes his formal approach to purchase Amaya assets outright.
The former Amaya CEO who officially resigned as leader of the company this August is prepared to pay CAD $24 per share representing a premium of 30.9 percent to Amaya’s Friday close of CAD $18.34.
Baazov who currently owns approximately 17.2% of Amaya equity, is reported to have his bid financing supported by four separate funds. Should his acquisition be successful, Baazov will move to create a new business entity holding Amaya’s core asset of PokerStars.
The new entity is prepared to set aside $200 million until its deal with Amaya is approved, with Baazov further stating that if the deferred payment is due before the deal closes, the entity will release funds in advance.
Amaya’s latest acquisition offer comes following last month’s failed merger negotiations with FTSE-listed bookmaker William Hill Plc. The merger which looked to create a ‘global gambling powerhouse’ failed to gain key investor backing from both operators.
Since Baazov’s departure from the company, Amaya governance has created a ‘special committee’ reviewing the firm’s potential strategic options.
In its latest trading update, Amaya reported a better-than-expected Q3 2016 performance with the operator declaring a net income of US $12.6 million boosted by increased player activity.
