Baazov makes £5bn Amaya takeover bid
Former CEO says he has secured funding to acquire 100% of common shares
Former Amaya CEO David Baazov has delivered a bid to acquire the Toronto-listed firm in a deal worth approximately $6.5bn (£5.2bn) including debt.
Baazov delivered the $24 (£14) per share proposal on behalf of a to-be-formed entity called BidCo, which he said is prepared to provide a $200m (£117.8m) deposit into escrow upon execution of a definitive agreement.
The former chief exec also said he has received binding equity commitment letters from several investors, for a total commitment of $3.65bn (£3bn) for the purchase.
“As the online gaming industry continues to mature, I believe that it is in the best interests of Amaya to be positioned as a private company,” Baazov wrote in a letter to the company’s board. “While Amaya incurs the substantial costs and scrutiny associated with being a reporting company, it obtains no benefit from being public.”
Amaya’s board confirmed it had received the offer and said it will consider it.
The firm said in a statement: “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.
Baazov currently owns, or has options on, 17.2% of the company, which is currently trading at $18.34 (£10.8).
Amaya, which operates PokerStars and Full Tilt, said back in February it had received a non-binding proposal from Baazov to take the company private.
However, the deal was sidelined when Baazov was hit with insider trading charges in March and forced to stand down as CEO.
He was again identified as a potential buyer for the company in October following the failure of the William Hill merger talks, although insiders suggested he would be unlikely to raise the necessary capital, given the ongoing charges.
Amaya, which released its Q3 results this morning, saw total revenue up 14% year on year for the three months ended 30 September.