The former CEO and Chairman of Amaya Gaming, David Baazov, has made an official request to purchase the company for C$24 per common share. This amounts to C$3.48 billion or $2.56 billion US dollars. On Friday, the shares of Amaya closed at C$18.34 with Baazov’s offer representing just over 30% premium of that price point.
Baazov stated that the bid was made as he is soon to take on a head role for a new business entity. Baazov has reportedly secured $3.65 billion to use to purchase Amaya Gaming. Head and Shoulders Global Investment Fund SPC, Goldenway Capital SPC, Ferdyne Advisory Inc. and KBC Aldini Capital Ltd. are all interested in supporting the transaction in a financial manner.
The Board of Directors for Amaya Gaming has confirmed the official non-binding offer and members of the board will now start the review process and then make a decision. The board did point out that the offer may not be approved.
Back in February, Baazov announced that he was interested in purchasing Amaya Gaming, yet no offer was made until today. In March, Baazov faced changes of insider trading involving Amaya Gaming and the acquisition of PokerStars and Full Tilt via the Rational Group. Baazov has denied these claims. Soon after the charges were filed, Baazov left his position within the company and explained that he wanted to be able to focus his efforts on fighting the charges.
According to Baazov, the soon to be formed entity will pay $200 million of the $400 million in the deferred purchase price that Amaya is to pay for the acquisition of the Rational Group. The entity also plans on releasing funds in advance if the payment were to be due before the deal closes. Amaya is set to pay this amount by the 18th of November.
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