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CEO of online gaming firm Amaya interested in buying out other shareholders

Amaya Inc. (NASDAQ:AYA) investors are highly excited today, after CEO David Baazov announced that he is willing to acquire the company in an all-cash deal.

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The particular form and structure of the transaction have not been determined, and no discussions have commenced between Mr. Baazov and Amaya with respect to any particular transaction.

Amaya’s Board of Directors will now create a special independent committee to review the forthcoming proposal by Baazov which is estimated to be offering CAD $21 (£10-11) per common share, representing a 40% premium on Fridays TSX closing price.

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Other brands that Amaya owns include BetStars, StarsDraft, the European Poker Tour, PokerStars Caribbean Adventure, Latin American Poker Tour and the Asia Pacific Poker Tour.

Eric Hollreiser, Amaya’s Vice President of Corporate Communications, told the Financial Post that the company does not plan to offer additional comment on the planned bid beyond the news release issued Monday.

There is no guarantee that the outcome of this process will lead to a transaction, do we said. By mid-day, action was trading at $ 18.55, up $ 3.56, or 23.75%.

Baazov now owns 24.6 million common shares of Amaya, representing about 18.6 percent of the outstanding common shares, and has options to buy 550,000 more shares.

Up to Friday’s close, Amaya’s Toronto-listed shares had fallen 55 percent in the last 12 months.

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Maher Yaghi of Desjardins Capital Markets said the offer is below his fundamental valuation of $28.50 per share. There is no certainty that the proposed transaction will proceed or be consummated.

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