Former Amaya Gaming CEO, David Baazov, has expressed his plans of buying the online gambling establishment despite his backers stating that it had no involvement in the C$3.65 billion bid. The company’s shares fell by 6%. Rose by 2.6% after Baazov issued a statement where he shared his plans of acquiring alternative funding.
Baazov’s offer was in jeopardy soon after the Globe and Mail newspaper published an interview with Kalini Lal, CEO of investment firm KBC Aldini Capital.
According to Baazov, Lal, was said to be one of four international investors, which Lal has declined to say that he did not agree to provide funds. In the statement made by Baazov, he was advised by representatives of KBC Aldini Capital that an equity commitment letter supposedly to be delivered to him on behalf of KBC was delivered with KBC’s knowledge. KBC confirmed that it had not committed to providing financial aid.
“Baazov intends to obtain replacement financing and still currently intends to acquire Amaya on the terms previously disclosed by him on November 14, 2016,” the statement said. Baazov now owns 17% of Amaya, spoke last week that he intends on making an offer of C$24 per share on behalf of the soon to be formed entity led by himself and backed by four international investors, including KBC Aldini.
During an interview with the Globe and Mail, Lal, KBC Aldini’s founder and CEO, said: “I don’t know who Amaya is. We have not given any commitment, nor have we had any discussions or any type of verbal communication.” According to Lal, KBC Aldini filed a complaint with the U.S. Securities and Exchange Commission; this is the same commission which regulates Amaya in the U.S.
In a statement issued by Amaya soon after the market closed, the company said that it’s continuing to “carefully assess” Baazov’s proposal, including the information published in the Globe and Mail report and will not make any further comment at this time.