Baazov abandons Amaya takeover attempt
Operator’s former chief exec says asking price had risen too high
David Baazov has abandoned his Amaya takeover attempt after “certain Amaya shareholders” demanded too high a price, he announced this morning.
The former chief exec said he had increased his bid from C$21 a share to C$24 per share, but it was not enough to close the deal.
“The decision to terminate my attempted acquisition of Amaya was not an easy one,” Baazov said in a statement.
“I retained a full suite of advisors, arranged committed financing, and engaged in constructive negotiations with Amaya’s board of directors. I submitted an unconditional, fully financed offer of $24 per share, higher than my original announced intention to submit a $21 per share offer.
“However, during the discussions it became evident that the share price premium demanded by certain shareholders exceeded the price at which my investors and I would be willing to complete a transaction.
“After consulting with my advisors, I determined that the best course of action for me and Amaya would be for me to end my attempt to purchase the Company.”
Baazov added: “As the founder of Amaya this was not a decision I took lightly, as it was always my intent to arrive at an outcome that was in the best interests of all shareholders.
“I wish my friends and former colleagues at Amaya continued success in driving value for all shareholders.”
The Baazov bid, which had a total value of around £5bn, was plagued with difficulties from the start, as one of his original named investors denied any knowledge of the deal.
Baazov secured replacement funding, but faced further obstacles when noted activist investor and Amaya shareholder Jason Ader urged the PokerStars-parent company to walk away from Baazov.
Amaya confirmed the termination of the talks in a press release.