Back in November, David Baazov made an official request to purchase Amaya Gaming at C$24 per common share. The former chairman and CEO of Amaya Gaming showed interested in acquiring the company, yet ran into issues after financial backers he said were involved stated they were in fact, not involved. Now it seems Baazov has backed out of talks with Amaya Gaming and will no longer be pursuing the acquisition of the company at this time.
Baazov has stated that talks have ended with Amaya Gaming due to shareholders demanding a higher premium for purchase. The deal presented by Baazov had a value of around $4.1 billion, but if you include the debt and transactions costs, the amount moves up to $6.7 billion in value.
After Baazov presented the deal, he had to announce that he would be seeking new funding for a portion of the offer based on KBC Aldini Capital denying their involvement in the deal. KBC was mentioned as one of the financial backers for Baazov along with Goldenway Capital, Head & Shoulders Global Investment Fund and Ferdyne Advisory. Reportedly, $3.65 billion of the deal would be financed by Baazov and the four investors.
Soon after the deal was made public, KBC denied involvement which put Baazov in a bind. He was left with only two investors, Goldenway Capital and the Head & Shoulders Global Investment Fund. It seems now Baazov and the investors are no longer interested in acquiring Amaya as shareholders want to see a higher share price premium than what they wish to offer.
It will now be interesting to see if Baazov is completely done with Amaya Gaming or if he comes back with another offer at a later date. Baazov is the largest shareholder of the company at 17% stake with Amaya closing yesterday in Toronto with C19.38.
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