Its time for the first of many articles in a new article series at VIP-Grinders. The Fail of The Week will introduce you to the hottest fails from the world of poker. Without further ado here is the first Fail of The Week!
Some time ago, we wrote about Amaya’s former CEO, David Baazov, and his $6.7 Billion bid to take Amaya private. After several failed attempts of a takeover, Amaya’s current leadership refinanced the company’s long-term debt adding a “fail safe”. This addition to the deal is supposed to prevent “a certain current shareholder” making further attempts to acquire the company.
No love for David Baazov
Ever since David Baazov was charged of insider trading and forced to step down from his position, there has been no love for him at Amaya.
Jason Ader, a 1% owner of the company is one of his most outspoken opponents. After Baazov’s multiple takeover attempts, Ader questioned his transparency as well as Baazov’s funding sources.
Ader also claimed that Baazov’s bids ware an attempt to take advantage of the company’s current financial situation.
Amaya refinanced its debt
Amaya and its lenders have reached a deal of refinancing the company’s long-term debt. Although Amaya is supposed to save more than $15 million per year from the new deal, there are definitely some other concerns to be addressed by it.
The deal includes an amendment meant to prevent a “certain current shareholder” from taking over the gaming giant.
The backers of Amaya are undoubtedly trying to keep its former CEO as far away from the company as possible.
From buying to selling
Just days after the deal was made, Baazov announced that he sold 7 million shares of Amaya at C$19 a share. The sale therefore totaled at C$133 million (US $99 million).
This amount represents only 30% of Baazov’s holdings in Amaya. Baazov still holds just under 18 million shares which equals to 12.1% of the company.
According to the stock market, Baazov’s move was beneficial for Amaya as its stock reached the highest price point of the year at C$20.06.
Trial date set in November
As mentioned, the Canadian court charged Baazov on insider trading. The trail is set to take place on November 20.
This is the biggest insider trading case in the history of Canada, according to the Quebec securities regulators.
Baazov and his two co-defendants have pleaded not guilty of the charges.
