Despite his seemingly very keen interest in purchasing the Canadian gambling giant Amaya, David Baazov officially announced he is withdrawing his buyout offer. The decision came after discussions with Amaya shareholders, which unveiled some of them had their minds set on premiums higher than Baazov and his financial backers were willing to pay.
Difficult Decision for Baazov
The former CEO and a major shareholder in the company, Baazov had a very serious intention to take the Canadian company private. He secured financing through several global funds willing to support his idea. Baazov even made a very generous offer of C$24 per share, which was significantly higher than the shares’ market value at the time of the proposal.
When one of the backers announced they weren’t interested, the former CEO wasn’t overly concerned. He restructured the deal, convincing the rest of the investors to increase their commitments. Everything seemed in place for the big buyout Baazov has been planning since February this year. The only thing missing was a confirmation from the Amaya’s Board of Directors.
Negotiations Come to an End
While Baazov kept emphasizing he was very serious about the deal, some of the Amaya’s shareholders didn’t share this feeling. They expressed their concerns about the transparency of Baazov’s financing plan. Some of the shareholders felt like the deal of this magnitude should offer much more clarity with regards to funding.
This was the first red flag things might not go as planned for Baazov and his investors. These fears came to fruition when the two parties sat down to talk the deal details. According to the former CEO, some shareholders asked for a premium that wasn’t in line with what the group was willing to offer. In light of these demands, they decided to terminate the negotiations.
Will Baazov Return?
David Baazov has been trying to purchase the entire company since February 2016. Already having 17% share in the gambling giant, he was firmly convinced taking company private was the right thing to do. However, after the latest negotiations fell through, he will probably have to give up for good.
The former CEO admitted as much in his statement. Baazov wished the best of luck to his former colleagues at Amaya, once again emphasizing he wanted to arrive at a solution that was in everyone’s best interest.
Amaya, the company behind the biggest online poker site PokerStars, is once again open to other possibilities. Prior to Baazov’s proposal, they were looking into a merger with William Hill, but that didn’t materialize as the UK giant didn’t feel the merger was a right move for the company.