Poker News

Amaya Inc., parent company of PokerStars, announced on Monday that it has received an offer from former CEO David Baazov to purchase the entire company. The offer price is CAD $24 per share, making the total deal valued at approximately CAD $3.48 billion.

Amaya’s stock price closed at CAD $18.34 on Friday, so Baazov’s offer represents a healthy 31 percent premium. Shares have leapt on the news, opening Monday morning at CAD $21. They are currently at CAD $21.50, a more than 17 percent increase from Friday’s close.

Baazov owns 17.2 percent of Amaya; his offer is not technically directly from him, but rather from a company that has yet to be created of which he will be the head. He also, as one might expect, will not be fronting all of the capital required to make the purchase. Four funds are contributing to the effort.

Baazov was the CEO of Amaya when the company bought the Rational Group, the firm that owned PokerStars, back in June 2014 in a stunning deal worth nearly $5 billion.

In March 2016, Baazov was charged by the Quebec’s financial regulatory body, the Autorité des marchés financiers (AMF) with insider trading in connection with the PokerStars purchase. The AMF said he was involved with “aiding with trades while in possession of privileged information, influencing or attempting to influence the market price of the securities of Amaya inc., and communicating privileged information.”

Shortly after the charges were filed, he took a leave of absence from Amaya. In August, he made that departure permanent, resigning from his post at the company. The news got worse for him in September, as the AMF accused he and others of putting together a kickback scheme to reward each other for insider information that led to trading profits. Kickbacks allegedly took the form of cash, checks, and even jewelry like a $13,000 Rolex watch. There is even evidence of an alleged 10 percent profit distribution to people involved in the 2014 PokerStars sale.

Amaya issued a statement on Baazov’s acquisition offer. It has been reprinted below:

Amaya Inc. (NASDAQ: AYA; TSX: AYA) confirmed today that it has received a non-binding all cash offer from its former Chief Executive Officer, David Baazov, on behalf of an entity to be formed to acquire Amaya at a price of CAD$24.00 per common share. Amaya also confirms that the offer provides for a USD$200 million deposit into escrow upon execution of a definitive agreement in respect of a potential transaction that would be converted into a one-year structurally subordinated, interest bearing debt obligation to fund a portion of the USD$400 million deferred purchase price for Amaya’s acquisition of the Rational Group in August 2014, such amount to be convertible into equity following the closing of such potential transaction.

The Board of Directors of Amaya, with the assistance of its advisors, will consider Mr. Baazov’s offer.  Shareholders of Amaya do not need to take any action with respect to any offer at this time. Amaya intends to provide updates if and when necessary in accordance with applicable securities laws.

As of the time of this release, there can be no assurance that Mr. Baazov’s offer or that any future bid or offer will ultimately result in a completed transaction.

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