David Baazov, former CEO and Chairman of Canadian Amaya, the owner-company of PokerStars, has come out with a really generous offer to buy the entire company. The offer makes it clear that Baazov didn’t give up on his plans announced in February, despite all the turmoil.
David Baazov to buy Amaya with new investors
Although the former CEO found himself in the middle of the insider trading charges scandal earlier this year, Baazov’s decision to buy Amaya remains unchanged. Although he abandoned his position with the company, Baazov retained 17.2% ownership share.
Baazov, who denied all charges, is clearly not deterred in his business endeavors. As it seems, everything is set for David Baazov to buy Amaya and goes through with the plan he unveiled back in February, when he revealed his intentions to acquire the entire company.
Four funds interested in backing Baazov
There is no denying Baazov knows his way around the business world when it comes to finding investments. He was the one who secured the necessary capital for Amaya to purchase PokerStars in the first place, and that transaction was huge for the company.
Now that the former CEO is looking to acquire the company, in which he holds around $435 million worth of shares, investors are lining up to back him. Baazov and his investors share in on the opinion that Amaya gains nothing by being a public company and this purchase would make it a privately owned entity.
David Baazov to buy Amaya at a generous price
Baazov seems very serious in his intentions, which is further proved by the fact that he offered a price per share almost 31% over the market closing price on Friday. Namely, the former CEO is ready to pay C$24 per share, while the actual price stood at slightly over C$18.
This represents a significant increase in relation to his earlier offer. In February, offer from David Baazov to buy Amaya was C$21 per share, but the unfavorable development of events with insider trading charges put those negotiations on ice.
Amaya looking for a serious buyer
Earlier this month, Amaya was looking into a possibility of merger with the British giant William Hill. However, the discussions fell through, primarily because one of the key William Hill shareholders expressed its stark disapproval.
However, the company has a standing board accepting acquisition proposals and their merits. The board was set up in February, when the initial offer of David Baazov to buy Amaya was presented.
The fact it remained active clearly indicates the company is on the lookout for a serious buyer. With 31% over the current share price, they are quite literally facing an offer they can’t refuse.
Following on the offer of David Baazov to buy Amaya, the company’s stock saw a significant spike. The share price went up 17%, clearly indicating a support for potential acquisition. It seems all allegations involving Baazov didn’t influence his reputation in the business community at all.
In his letter of intent, the former CEO and 17.2% owner emphasized that Amaya being publicly traded company only hurts its growth potential. Baazov clearly believes taking company private would help remove the obstacles for the company’s progress.
Although the Board of Directors hasn’t responded yet, when all facts are considered, the odds are they will accept the offer from David Baazov to buy Amaya, which will be another feather in the cap for the business-savvy Baazov.