The drama revolving around former CEO of Amaya continues. A couple of weeks back, David Baazov, a past CEO and the second largest shareholder in the Canadian gambling company made an offer to buy Amaya in its entirety. The plan seems to be buying all shares and then taking the company private.
However, the offer has been surrounded with controversies since the day one. Not long after Baazov had presented his offer, one of his key investors came out saying they had no idea they were involved with the deal. The former CEO quickly regrouped, stating it was all a big misunderstanding and securing missing funds. However, some of key Amaya stakeholders are starting to question how serious Baazov’s offer really is.
SpringOwl Asset Management Calls Out Baazov
SpringOwl Asset Management, one of the Amaya’s bigger stakeholders that’s been looking to increase its share in the company, publicly called out Baazov. In a letter sent to the current Amaya’s chairman, they expressed grave concerns about the buyout offer.
Jason Adder of SpringOwl insists that Amaya should get rid of David Baazov’s influence altogether. He further elaborated the offer doesn’t seem serious as it lacks transparency about investment sources. Adder pointed out the $4 billion bid should carry much more weight if Amaya shareholders were to seriously consider it.
David Baazov, who currently owns 17% of the Canadian company, has been trying to buy 100% of the shares since February 2016. He wasn’t deterred even by insider trading accusations which made him step down from his role as the CEO of the company. It is clear that Baazov has invested a lot of time and energy to secure investors willing to back his plan and eventually came out with a rather generous offer.
The former CEO offered a price per share significantly higher than the official market price. However, if Baazov can’t hold up his end of the bargain, the offer isn’t worth the paper it’s written on. It seems some Amaya investors, led by SpringOwl, believe this to be the case.
Faced with these allegations, Baazov remained unfazed once again. He responded through his representative, reassuring the investors he stands by his offer and has every intention of fulfilling his promises. He underlined he had every intention to continue constructive negotiations with the Amaya board of directors with the eventual goal of achieving a mutually satisfactory agreement.
And so, Baazov-Amaya courtship continues.