Baazov steps aside amid insider dealing allegations

Chief exec still plans to table offer to acquire Amaya in its entirety

Amaya CEO David Baazov has taken an “indefinite leave of absence” from the firm while he “vigorously contests” charges of insider trading filed against him last week. [private]

Amaya said Baazov wanted to “avoid a distraction” for the company while he fought the five charges filed by the Autorité des marchés financiers (AMF) on Wednesday.

Baazov said he would also use the time to continue working on his offer to acquire Amaya in its entirety after revealing plans to takeover the firm at the start of the year.

“As always, I continue to be dedicated to doing the right thing for Amaya and all its stakeholders,” Baazov said.  

“I believe that stepping down in the short term will help to avoid distraction for the company and its management while I vigorously contest all allegations made against me and pursue my bid to acquire the company,” he added.

With Baazov gone, Amaya has appointed Dave Ghadia as interim chairman and Rational Group CEO Rafi Ashkenazi as interim chief executive officer. 

Ghadia has been a director since 2010, and is also chair of the special committee of independent directors tasked with overseeing the Baazov takeover bid or any others that may be forthcoming.    

The AMF filed a total of 23 charges against Baazov, an employee and an advisor relating to activity in the run up to its $4.9bn acquisition of PokerStars back in 2014.

The charges against Baazov include aiding with trades while in possession of privileged information, influencing or attempting to influence the market price of Amaya stock, and communicating privileged information.

Amaya’s share price was down 4% to CAD$14.81 when markets closed yesterday. 

For further analysis on what impact the AMF charges could have on Amaya in the long term, click here.