Amaya issues committee update on Baazov takeover proposal

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Toronto-listed Amaya Inc has issued a corporate statement updating the market on its appointed special committee reviewing the management buyout offer put forward by current CEO and Chairman David Baazov.

Amaya informs that to date its board has not received a formal proposal by Baazov and his executive regarding the takeover of the company.

The independent committee advised by Barclays Capital Canada had been formed on 9 February, after Baazov had notified the board of his intention to acquire Amaya at CAD $21 per common share (cash offer).

The special committee will review the offer and other potential alternatives in the interest of Amaya shareholders.

Updating the market, the special committee informs that the following actions have been undertaken since Baazov initial proposal:-

  • Engaged Moelis & Company LLC to provide an independent valuation of Amaya’s securities in connection with any offer that may be made by Mr. Baazov. Any such independent valuation will involve financial analysis of Amaya by Moelis & Company, including analysis of management’s forecast of Amaya’s financial performance.
  • Engaged with Mr. Baazov in settling the terms under which confidential information regarding Amaya would be made available to Mr. Baazov’s group for the purposes of evaluating and possibly making an offer.
  • Implemented processes and restrictions and established guidelines regarding the ongoing management of Amaya in the context of a potential offer for Amaya by a group led by Mr. Baazov. These guidelines relate to, among other things, the treatment of confidential information, transactions outside of the ordinary course of business, and communication with employees and external parties.
  • Determined, in consultation with the Audit Committee of the Board of Directors, that in view of the potential offer that may be forthcoming from Mr. Baazov, and the fact that the Special Committee’s financial advisor and the independent valuator have commenced their review process, Amaya will not be providing guidance with respect to its 2016 financial performance in conjunction with the release of its financial results for the fourth quarter and year ended December 31, 2015.

Amaya Inc is set to announce its 2015 full year earnings results on 14 March.


Source: SBC News

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