Amaya Gets Huge Buyout Bid From Former CEO

(RTTNews) - Canadian gaming and online gambling company Amaya Inc. (AYA) received a $3.48 billion take over offer from its former CEO David Baazov.

The offer represents a premium of more than 30 percent based on the close of Amaya on November 11. Baazov holds about 17.2 percent stake in Amaya.

On reports of takeover, Amaya shares gapped open on Monday morning on more than average volume.

The acquisition will be on behalf of an yet-to-be formed entity led by Baazov.

Earlier in February, the company has announced that it received a non-binding proposal from Baazov. However, the CEO was charged with insider trading and he left the company temporarily on a paid leave. Later, he was found not guilty.

In 2014, Amaya has finished a $4.9 billion acquisition of poker business firm Rational Group Ltd. From Oldford Group Ltd.

For the third quarter, Amaya reported adjusted earnings of $0.42 per share, while analysts were looking for $0.39 per share.