Baazov withdraws Amaya bid

Former Amaya chief executive David Baazov has withdrawn his bid for the PokerStars owner citing a disagreement over valuation.

Baazov, Amaya’s founder, offered to buy the company in mid-November in a deal valued at about $4.1 billion (€4 billion).

The $18-a-share cash bid could have been worth $6.7 billion in total taking into account debt and transaction costs.

The bid was criticised by minor Amaya shareholder SpringOwl Asset Management, which claimed it was insufficient and lacked transparency.

Its progress was further derailed when KBC Aldini, a Dubai-based investor, said last month its purported backing for the deal announced was given without the firm’s knowledge or consent.

In a subsequent filing to the US Securities and Exchange Commission, Baazov had said two Hong Kong funds agreed to boost their support as a result.

In a statement released today (Tuesday), Baazov said: “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.”

Amaya also released a statement that said: “Amaya confirmed today that discussions with its former chief executive officer, David Baazov, regarding the offer to acquire Amaya by an entity to be formed, have terminated.”

Baazov stepped down from his position as chief executive in March after he was charged with multiple counts of illegal insider trading, including stock manipulation, by the Autorité des marchés financiers (AMF), Quebec’s securities regulator in connection with Amaya's $4.9 billion acquisition of Rational Group.

None of the charges have been proven in court.

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