Amaya Gaming CEO Offers C$2.8 Billion Buyout
News of a Baazov’s big deal sent investors scrambling to snap up shares of the massive gaming empire before the deal closed. That, in turn, drove the value of Amaya Gaming stock up almost 27% before the first minute of trading had passed during Monday’s trading session.
According to the Financial Post, Baazov’s offer is an all cash deal to purchase each and every Amaya Gaming share for $21 a piece. That’s a pretty sweet 40% premium on the stock’s Friday value of $14.99 per share.
While paying a 40% premium for the privilege of owning the entire company may seem like a steep price to outsiders, it’s actually a pretty sweet deal for Baazov.
For starters, he already owns 18% of the outstanding shares, so in actuality, he’s really only trying to grab up the remaining 22% of shares he doesn’t already own.
If successful, he’ll be sitting in a very sweet position as he, and his partners, will be completely free of the pressures of pleasing shareholders. That’s some pretty sweet freedom for a company that’s seen its share of setbacks, despite its position as one of the top gaming companies on the planet.
The massive caveat that goes with this story is that the whole deal could fall apart at any moment.
In a press release that went out this morning, Amaya Gaming press officials stressed that Baazov could pull the offer at his leisure. That’s led to speculation of all sorts, but no one but Baazov and his partners know what his end game might really be.
This is a story that’s clearly going to evolve in the days and weeks to come.