MONTREAL – Amaya Inc. CEO David Baazov says he still intends to create a bid to just accept gambling online company private, though he can’t say because he will officially announce his offer.
“I will move towards submitting an offer to get the outstanding shares of Amaya, in line with my previously announced intentions,” said Baazov in the business call Monday, following a company reporting fourth-quarter and full-year most current listings for 2015.
Early in February Baazov announced he was prone to result in the offer by early March; however, by reporting fourth quarter results, he’s still not announced an offer.
Amaya, who owns PokerStars and Full Tilt, reported an every three months loss, as opposed to a year-ago profit, because of the impact of the lower Canadian dollar and product rollout challenges.
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Net loss from continuing operations was $15.8 million, or a insufficient 7 cents per share, as opposed to net earnings of $35.6 000 0000, or 17 cents per share, last year.
The company posted revenues of $389.5 million for the 3 months ending Dec. 31 2015, when compared with $339.4 million in 2014.
For the season, it earned $372.2 million, or $1.76 per share, up from $314.9 million, or $1.53 per share, in 2014. Revenues were up 8.3 % to $1.37 billion.
Baazov said recently he along with a quantity of investors are thinking about an all-cash takeover of Amaya at $21 per share, pushing the Pointe-Claire, Que.-based company’s fill 20 % to $18.
“I’m a tiny bit surprised, but at the same time I am not doubting that there’s a bid,” Dundee Capital Markets analyst Eyal Ofir told the Financial Post. “For me it’s a bigger factor, even so the real question is what and what may be the long-term value.”
Baazov said he wasn’t in a position to discuss why he’d not given a deal, however, Ofir speculates the delay might be because of technical or legal issue.
Ofir also believes the sale undervalues the business which will probably get ready the mid-20s.
Although the stock has consistently traded more than $18 because the announcement, it’s remained underneath the $21 potential offer, closing down 2.11 percent at $18.60 on Monday.
As recently as November, the company was trading above $30 but dropped sharply after Amaya announced weak most current listings for the growing season.
The company has generated a unique committee of independent directors to supervise the takeover, saying it’s implemented restrictions on Baazov’s management considering his potential offer.
Amaya stated it didn’t provide guidance due to its 2016 financial performance due to the potential offer from Baazov cheap the Special Committee’s financial adviser as well as the independent valuator have commenced their review process.
The company says it’s not received offers inside the other party, however, after February, London’s Sunday Times reported that Playtech PLC was considering a deal for your online gambling company.
Amaya owns the PokerStars internet casino platform, which holds approximately two-thirds business and Amaya’s poker revenues in 2014 were greater than 12 times that relating to its closest competitor.
Amaya remains under investigation for insider exchanging the wake in the PokerStars acquisition during the summer time of 2014.
The company has worked to acquire approval from regulators, mainly in the U.S. where PokerStars and Full Tilt Power are set to go live in New Jersey on March 21. Ofir says the business can also be making regulatory headway in California, Pennsylvania and Florida.
However, there’s ongoing suit in Kentucky following a judge there awarded $870 million in damages for your state associated with investment property on PokerStars by residents.
Ofir rates Amaya like a “Buy” using a one-year target cost of $35 per share.
dvanderlinde@nationalpost.com
