Former Amaya CEO Baazov Lets Go Of Seven Million AYA Shares

Published Thursday, March 09, 2017 - Online-Casinos.com
Former Amaya CEO Baazov Lets Go Of Seven Million AYA Shares

Amaya Gaming headquartered in Quebec Canada has one interesting past which continues to disrupt many conversations relating to the online gambling industry. A few months ago late in December of 2016 the former CEO of the big internet betting business David Baazov dropped his bid for the company at $24-a-share. “The best course of action for me and Amaya would be for me to end my attempt to purchase the company,” Mr. Baazov said in a release then which caused a reduction in the stock price at the time as uncertainty spiked about the ability of Mr. Baazov to deliver on his proposal. The company  had shareholder the SpringOwl Asset Management LLC, a New York-based hedge fund, voicing public disapproval of the “significantly undervalued” bid by Mr. Baazov.  “Consistent with Mr. Baazov’s time as CEO of the company, his proposal lacks transparency,” wrote Jason Ader, CEO of SpringOwl and owner of more than a million shares.

Fromer CEO Baazov has been stepping farther away from the company by the week and a recent revelation he has just let go of seven million common shares in the company for C$133 million (€93.6 million/US$98.6 million) doesn’t surprise anyone. At this time Baazov has only around 17.6 million common shares, representing 12.1% of issued and outstanding Amaya Gaming common stock. Amaya has amended the applicable credit agreement and repriced the first lien term loans saving the company approximately 13%, or $15.4 million, of interest expense on the loans annually.

Vice-president, of finance and capital markets for Amaya, Kimberly Fitzgerald commented, “The successful completion of this transaction underscores the strength of our current business and operations, as well as the continued support of our existing lenders and interest of new lenders.” Fitzgerald added, “The transaction will help reduce our currency risk, lower our interest expense, and accelerate the payment of the remaining amounts owed on our deferred payment obligation.”

 

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