David Baazov, former CEO of Amaya Inc., said in a statement that a Dubai-based firm that he initially said was helping to finance his bid to purchase Amaya is not involved with the deal.
Reports had surfaced that Dubai-based KBC Aldini Capital Ltd. was disavowing any knowledge of the deal even though Baazov had named the company in financial filings as an investor in his acquisition bid. In a statement, Baazov said an equity commitment letter he received purporting to be from the firm was delivered without KBC’s knowledge or consent, according to CBC News.
The firm has reportedly filed a complaint with U.S. securities regulators after the initial disclosure. Amaya stock fell about 7 percent after reports of KBC disavowing the bid surfaced. Kalani Lal, chief executive officer of KBC, told the paper he didn’t know what Amaya was and his company hadn’t held any discussions.
The $4.1 billion equity portion of Baazov’s offer included $3.65 billion in commitments from sponsors. In regulatory filings, Baazov said two Hong Kong-based firms had committed to the equity financing, Head & Shoulders Global Investment Fund SPC and Goldenway Capital SPC and KBC. Another firm, Ferdyne Advisory Inc., was also contributing funds, he said.
Baazov said he intends to obtain replacement financing for the KBC investment and is still holding to his $6.7 billion proposal to buy Amaya and take the company private.
Baazov made the proposal saying he is leading a group of investors that has offered $24 Canadian per share for Amaya. The bid values Amaya at about $3.48 billion, CBC News said.
Amaya officials said they are still carefully considering Baazov’s proposal, but have not commented on the misfiling.
