CEO of online gaming firm Amaya interested in buying out other shareholders

David Baazov, Chairman and Chief Executive Officer of Amaya Inc.

“There can be no assurance that Mr. Baazov’s intention will result in a formal bid or offer or that any such bid or offer will ultimately result in a completed transaction”, said the news release.

Based on Amaya’s basic share count, the proposed offer values the company at about C$2.8 billion, representing a premium of about 40 percent to its Friday close on the Toronto Stock Exchange. In later trading, Amaya (TSX:AYA) was at $18.58, up $3.59 from Friday.

It said there is no guarantee that a transaction will proceed or be concluded.

Currently Mr. Baazov holds more than 24.5 million shares of Amaya – or 18.6 percent of the approximately 132,780,000 common shares in circulation – as well as 550,000 stock options. The committee, which will be chaired by Amayas Lead Independent Director David Gadhia, would consider Baazovs offer were it to materialise as well as any other proposals from alternative sources.

Calling the new “positive” for investors, Maher Yaghi, Desjardins Capital Markets, stressed, however, that the offer of $ 21 per share was below its target being $ 28.50.

“It is pertinent to note that the appreciation of the USA dollar represents a potential obstacle for the European activities of poker”, he wrote. Its poker brands have 97 million registered players around the world. Amaya bought PokerStars and its sister site Full Tilt in 2014 for $4.9 billion.

Grigo says Amaya’s recent approval from the New Jersey Division of Gaming Enforcement has bolstered the feeling that its regulatory issues may be in the past.