David Baazov is the founder of Amaya Gaming who seems to be no stranger to controversy. Baazov has faced charges of insider trading, dating back to when the company acquired the Rational Group, owner of PokerStars and Full Tilt gaming brands and now seems to be having issues as he tries to take over the company after stepping down from his role as CEO earlier this year.
Back in March, Baazov stepped down from his CEO position temporarily within Amaya after being charged with insider trading. He would then resign fully from the position and officially announce his intention to acquire the company. However, it seems that his efforts may face a problem as an investment firm named as a financial backer in the acquisition bid says they are not involved in Baazov’s attempt to own Amaya.
Baazov claimed that financing for the transaction had been secured from several companies including KBC Aldini Capital. The Dubai-based investment firm has denied the claims and even filed a complaint within the Securities and Exchange Commission. KBC Aldini Capital is one of four companies that Baazov listed in a filing that stated financing help would be provided to meet the $6.7 billion offer for the company.
In the filing, there are three additional companies listed: Ferdyne Advisory Inc., Head and Shoulders Global Investment Fund and Goldenway Capital. Each of these companies have not denied being involved in the financing aspect of the Amaya Gaming bid by Baazov. Kalani Lal is the CEO of KBC Aldini Capital who stated that his firm had no involvement with the attempt by Baazov to re-acquire the company.
The announcement of the bid to acquire Amaya Gaming was originally made by Baazov on the 14th of November. This announcement caused the share price of Amaya to jump 16%. Currently, Baazov owns around 17% of shares in Amaya. If the SEC finds that Baazov made the announcement to manipulate the stock prices, he could face jail time or large fines. With the announcement by KBC stating they were not involved, the shares of Amaya fell by close to 7%.
Amaya Gaming has responded to the announcement by KBC by stating that they are aware of the media reports of Baazov’s proposal from the 14th and the company is continuing to review the proposal and have no comment at this time.
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