Amaya’s CEO and chairman is looking to take the largest online poker company of the world about 18 months after it got hold of PokerStars for $4.9 billion. David Baazov along with a bunch of investors declared on Monday that their interest in paying US$ 21 per share in cash, forty per cent above Friday’s closing amount.
Recently, a news release issued in Baazov’s name said that the main form and structure of the transaction have not been determined, and no discussions have commenced between Mr. Baazov and Amaya with respect to any particular transaction.
It stated that there is no guarantee that dealing would go on or be reasoned out. A same statement issued by the board of directors of the company stated that a committee of independent directors would critique any formal offers by Baazov or others.
The proclamations prompted a soar up in Amaya’s stock price that peaked Monday at $19.75 on the Toronto Stock Exchange — the most since 24th December. In later dealing, Amaya (TSX:AYA) stock fell back to close up US$ 3.01 or 20% at $18.
Baazov owns around 18.6% of the 132.78 million undischarged shares of Amaya and has alternatives to buy 550000 more shares. Amaya would worth $2.79 billion at the proposed purchase price, and that includes the stock as well as options that Baazov now owns.
The stock of the company has not recovered since dipping from above $31 in November after it took down its financial anticipations for 2015. Over the past fifty-two weeks, they have fallen from a top of US$ 37.52 around a year ago to a low of US$ 13.73 last week.