Baazov Take Over Investor Denies InvolvementNovember 25, 2016 4:05 pm
After former Amaya Inc CEO David Baazov announced his intention to acquire the company for $6.7 billion, along with a consortium of investors which included Dubai-based KBC Aldini Capital, the online gambling firm noted a spike in its share price. However, Amaya stocks took a 6% hit recently, following a statement released by KBC CEO Kalani Lal while talking to Globe and Mail.
According to Lal, he has no such agreement in place with Baazov, and he even went so far as to deny any knowledge of the company. As his statement subsequently read:
“I don’t know who Amaya is. We have not given any commitment, nor have we had any discussions or any type of verbal communication.”
Amaya shares have since stabilized to 19.53CAD as of November 25th, but the development nevertheless castes doubt upon the ultimate success of Baazov’s bid. Baazov is already being investigated by Quebec’s Autorité des marchés financiers (AMF) for insider trading, and is currently facing the prospects of spending up to five years behind bars if found guilty.
Now, further pressure could be heaped upon Baazov if it turn out that he was attempting to deceive Amaya’s board by exaggerating his investor backing. In the meantime, US regulators will be taking note of the situation, and considering their strict approach concerning the records of senior executives, Bazoov may have caused irreconcilable harm to his takeover bid of Amaya. Nevertheless, Baazov seems undaunted by matters, and according to Reuters news said that he now intends to seek alternative funding:
“Baazov intends to obtain replacement financing and still currently intends to acquire Amaya on the terms previously disclosed by him on November 14, 2016.”
According to Baazov recent filings to the U.S. Securities and Exchange Commission (SEC), two of the companies currently involved in providing funding for the takeover bid includes Head and Shoulders Global Investment Fund, and Goldenway Capital.