Canada-based gambling giant Amaya Inc. announced today that founder David Baazov has decided to take an indefinite leave from his posts as Chairman and Chief Executive Officer, effective March 28. The company pointed out that Mr. Baazov has taken his leave absolutely voluntarily and in order to focus his attention on preparing an offer for the acquisition of Amaya.
Mr. Baazov also wants to avoid any distraction for the gaming company while he responds to the recently announced allegations against him. Earlier this month, the Autorité des marchés financiers, known to be Quebec’s securities regulator, announced that following a comprehensive investigation of a certain period before and shortly after Amaya’s $4.9-billion purchase of PokerStars and Full Poker, it has found out enough evidence to charge the Canadian company’s founder with insider trading.
Amaya’s board of directors has appointed Rafi Ashkenazi as Interim CEO and Dave Gadhia as Interim Chairman. Mr. Baazov will remain a board member. Mr. Ashkenazi is the current CEO of the Rational Group, which owns online poker rooms PokerStars and Full Tilt. As for Mr. Gadhia, he is Lead Independent Director of Amaya’s board and also chairs the Special Committee of independent directors, which was established early in February 2016 to consider any formal proposal made by Mr. Baazov or other interested parties.
No offer has been made to date. However, Mr. Baazov has informed committee members that he still intends to make one. Earlier in March, Amaya and its founder entered into an agreement to set out the terms upon which he and his partners will be given access to confidential information about the gambling company related to his proposal.
Amaya has said that Moelis & Company has been retained as a valuator that would prepare the formal valuation of the company’s securities when and if an offer is made. The valuation needs to be carried out so that it complies with the Canadian securities laws.
Commenting on the announcement about his leave, Mr. Baazov said in a statement from earlier today that he will keep on being dedicated on doing what is right for Amaya and its shareholders. He further noted that stepping down will help the company keep itself from distractions as he is contesting the allegations against him and is preparing his bid for taking the operator private.
