David Baazov Abandons Bid to Takeover Amaya
Canadian online gambling company, Amaya, is no longer being sought after by David Baazov. The company’s founder and former CEO, Baazov had previously made a bid to purchase the company for an estimated $3.5 billion or $24 per common share. At the time that he made his proposition to acquire the company, he said that he had secured financial backing from four international investors.
However, recently, the businessman announced that he had decided to end his efforts to buy back the company because some shareholders were demanding a price that he found too high.
In a statement, Baazov explained that “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’s bid to buy the company was problematic from the start and after he made a second bid for Amaya, shareholders expressed that they were not pleased by his offer. One shareholder, Jason Ader, went so far as to say that he believed Amaya should refrain from having any future affiliations with the former CEO and Chairman, who had been charged with insider trading back in February 2016.
In spite of dropping his bid, David Baazov still holds an estimated 17% stake in the company.