Former Amaya Chairman and CEO David Baazov has made an official bid to acquire the Canadian online gambling company for an offer price of C$24 per common share or the approximate amount of C$3.48 billion.
Amaya shares closed at C$18.34 on Friday. In other words, Mr. Baazov’s offer represents a 30.9% premium of the company’s Friday price.
Mr. Baazov said earlier today that he has made the bid as the head of a soon-to-be-formed business entity. The former Amaya CEO also disclosed that he had secured $3.65 billion for the potential purchase of the gambling giant. As many as four funds had expressed interest in supporting the transaction financially, with those being Ferdyne Advisory Inc., Head and Shoulders Global Investment Fund SPC, KBC Aldini Capital Ltd., and Goldenway Capital SPC.
Amaya’s Board of Directors confirmed that an official non-binding offer had been made by Mr. Baazov. Board members will now review the bid and will provide information on their decision in due manner and course. However, they pointed out that the offer may not result in a transaction being completed.
It was in February when Mr. Baazov first announced that he planned to buy the online gambling operator and thus take it private. However, no official offer has been made up until today. In March, the former Amaya CEO and other top company officials were charged with insider trading by the Quebec securities regulator Autorité des marchés financiers (AMF).
Mr. Baazov has been among the subjects of investigation launched by the AMF in 2014, shortly after Amaya bought online poker brands PokerStars and Full Tilt Poker. He had allegedly used confidential information to influence the Canadian company’s market price.
The former Amaya CEO and Chairman left his posts at the company in the following months, explaining that he wanted to focus his attention on fighting the AMF charges, to which he pleaded not guilty, and preparing an official bid for the operator. Mr. Baazov currently owns a 17.2% stake in Amaya.
It was announced last month that Amaya and UK gambling operator William Hill have been discussing potential merger that would have created a £5-million gambling giant. However, William Hill abandoned the deal after being pressured to do so by its largest investors.
Amaya’s Board said at that time that following the merger’s failure, it would probably be best for the operator and its shareholders to remain a publicly traded corporation.
