Activist investor Jason Ader the CEO of New York hedge fund SpringOwl, has urged the governance of Toronto-listed Amaya Inc to cut its ties with former Chief Executive David Baazov.
Canadian business news sources have reported that Ader has sent a formal letter to Amaya governance stating that it was ‘time for the company to fully move on from Baazov’s undue influence’.
Ader’s public rejection of Baazov, will mark a further complication for the former CEO’s proposed CAD $6.7 billion acquisition of Amaya assets, who has had the financing of his CAD $24-per share offer come under question.
At present, SpringOwl holds over 2% of Amaya equity. Ader a proven industry activist investor did not hold back in his attack of Baazov and his credentials at taking Amaya private, labelling Baazov’s deal as “a continued attempt by a discredited former executive to capitalise on the Amaya situation at other shareholders’ expense.”
The New York investor urges Amaya to implement a ‘clean break’ from Baazov, by placing his 17% corporate equity in a trust. Furthermore, Ader states that Amaya governance should stop paying for Baazov’s ongoing legal fees against charged by Quebec’s AMF and should further halt his salary.
Baazov representatives have hit back at Ader’s statement, replying that “Mr. Baazov stands behind his offer and intends to continue engaging constructively with Amaya towards a board supported transaction”, wrote Riyaz Lalani spokesperson for David Baazov.