Amaya CEO Wants To Take Company Private For US$2 Bln
Amaya Inc., the owner of online game brands PokerStars and Full Tilt Poker, confirmed on Monday that it had received "non-binding instructions" from its chairman and chief executive David Baazov to take the company private.
Mr Bazov, who is reportedly in talks with an anonymous group of investors, proposes to take Toronto-listed Amaya shares private to an all-cad deal worth 2.8 billion CAD ($2 billion) and pay CAD21 per common share, a 40% premium, from Friday's close.
The stock closed 20.1% higher at CAD18 the day after it was announced on Monday.
Amaya's stock price fell from the CAD37 range around March last year to CAD13.73 last week. The stock took a hit in November when the company drastically cut its earnings and profit outlook for 2015.
The offer comes less than two years after Amaya paid $4.9 billion to buy Oldford Group Ltd, the parent company of Rational Group Ltd, which operates PokerStars and Full Tilt Poker.
According to a press release published by Mr Bazov, no talks have been held between Mr Bazov and Mr Amaya so far. The specific form and structure of the transaction have not been determined, and there is no guarantee that the transaction will proceed or be completed, the announcement added.
According to the announcement, Mr. Bazov currently owns 18.6% of Amaya's outstanding shares, with an additional 550,000 shares available for purchase.
The company also said in a press release that the board "has established a special committee of independent directors to review upcoming proposals as well as other alternatives available to Amaya."
"Dave Gardia, Amaya's chief independent director, will chair the special committee," the company said.
It added: "As of this disclosure, the Select Committee has not received or requested any formal bids or offers relating to potential transactions, and there is no guarantee that Mr Bazov's intent will result in formal bids or offers or that such bids or offers will ultimately result in a completed deal." 바다이야기