The bid by former CEO of Amaya Gaming, David Baazov, to take over the company has been a controversial one. From the start the efforts by Baazov seemed doomed especially after reports surfaced that one of the mentioned financial backers was not actually involved in the deal. Now it seems that a shareholder in the company has come forward to say that the offer is undervalued and lacks transparency, and the board should not consider the bid, cutting ties with Baazov permanently.
Jason Ader is the CEO of SpringOwl Asset Management, an investment management services provider. A letter was sent from Ader to Amaya last week that discussed the bid and how it should not be considered. In the letter, Ader stated that the bid by Baazov undervalued the company and that is lacked transparency. Ader pointed out that the board should not consider the deal and that the company should cut ties with Baazov as he had a bad influence on Amaya.
The CEO is referring to the insider trading allegations that Baazov faced in regards to the acquisition of the Rational Group by Amaya Gaming. Ader stated that Baazov had blemished the reputation of the company. According to the CEO, the offer is not one that will do much good to Amaya Gaming or their shareholders. He reportedly thinks the company would be able to see better rewards if they were to follow their growth strategy. The company should be more focused on the new online casino and sports betting divisions as well as maintaining a top position in the online poker industry.
SpringOwl recently decided to increase their stake in Amaya to 2%. The board of Amaya Gaming has yet to respond to the letter, which was received late last week, but one could imagine it is being considered. Since Baazov’s announcement of the bid has seen so much controversy, it would be surprising to see the board actually go through with it.
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