David Baazov, a former CEO and one of the major shareholders in the gambling giant Amaya, has been in the center of the media attention recently because of his proposal to buy the entire company. Baazov claimed to have found four companies interested in backing his $6.7 billion purchase offer when he presented his letter of intent to the Amaya Board of Directors. However, it appears that one of the four investors has no knowledge of the deal and has no intention of backing Baazov's undertaking.
KBC Aldini Capital Out
One of the companies initially mentioned by Baazov was Dubai-based KBC Aldini Capital. Shortly after the former CEO presented his bid, rumors started circulating that KBC wasn't actually interested in being part of this takeover. These rumors were confirmed by the Dubai company last week when they came out with an official statement explaining the letter of commitment Baazov had received was sent out without a proper consent from the company.
Baazov himself confirmed this to be the case as well. It is unclear at this point how this misleading letter found its way to the Amaya's founder and former CEO.
Baazov Sticking to His Guns
Despite of one of his major investors backing out or not being interested at all, David Baazov has made it clear he has no intention to give up on his bid to buy Amaya. The company's founder has been trying to find a way to purchase the company since February this year and he seems to be closer than ever to reaching his goal.
Although KBC is apparently not interested in backing Baazov, three other companies listed in the letter of intent are still willing to provide funding. These are Goldenway Capital SPC, Head & Shoulders Global Investment Fund, and Ferdyne Advisory Inc.
Finding Missing Funds
With KBC out of the picture, David Baazov will need to find a new investor to provide the missing capital or convince one of the interested investors to up their stake. Either way, the former CEO announced that nothing has changed and his offer still stands.
At the same time, Amaya's Board of Directors is carefully considering Baazov's proposal, making sure everything is in order and deciding if this course of action would be in the company's best interest.
To remind you, Baazov made a very generous offer for Amaya, quoting a price per share significantly higher than the market value at the time of the offer.