After a resignation from Amaya Inc. in August, David Baazov is now leading a group of big name investors. The group has a of taking over the company.
The founder and former chief executive of the online gaming giant was forced to step down as a CEO of Amaya in August, due to charges of five offences. including attempting to influence the market price of Amaya stock.
Baazov already holds a chunk of Amaya stock
David Baazov is already an owner of 24,5 million shares and options that allow him to claim 387,500 more. According to these numbers, he is at this time, a 17,2% owner of Amaya Inc..
The attempt of a takeover was a possibility ever since February, when he told the media he was interested in buying out other shareholders.
In cooperation with Hong Kong-based Goldenway Capital, Head & Shoulders Global Investment Fund, KBC Aldini Capital based in Dubai and Ferdyne Advisory registered in the British Virgin Islands, Baazov is offering $6.7 Billion to take Amaya private.
With $24 per share, the group is valuing the company at $3,48 Billion. In comparison with $18.34 which was the price of the stock on Friday when the Toronto Stock Exchange closed, their bid of $24 is 30% higher. A bid in that range is surely interesting for the current shareholders.
In a letter included in a regulatory filing Baazov wrote: “Because of my familiarity with Amaya, I am in a position to negotiate a definitive agreement that need only contain limited representations and warranties, on an expedited basis, thereby reducing any distraction to management.”
Later on he added: “I expect to be able to settle the terms of the definitive agreement quickly.”
Talks of merger with William Hill PLC failed
Last month Amaya announced that its special committee of independent directors completed a review of its strategic options. They came to a conclusion that it would remain an independent publicly traded company.
The company also held talks of merger with a British betting giant William Hill PLC. These talks also ended without a deal.
How much is Amaya actually worth?
Amaya reported that it earned six cents per share which sums up to about $12,7 million. Their numbers are therefore falling compared with $29,1 million a year ago.
The revenue of the quarter that ended on 30th of September, totaled at $270,8 million. In the same quarter last year, Amaya made just over $247 million.
The company is expecting to finish the year at between $1,14 billion and $1,16 billion in revenue.
How do you feel about this overtake? Will it be good or bad for the industry?
