Amaya Inc‘s founder David Baazov said on Tuesday he had ended talks to buy the Canadian online gambling company because some shareholders were demanding a higher premium.
Amaya’s U.S.-listed shares fell about 3 percent to US$14 in pre-market trading on Tuesday.
Baazov, Amaya’s former chief executive, offered to buy the company in mid-November in a deal valued at about US$4.1 billion. Including debt and transaction costs, the deal was for US$6.7 billion.
Baazov in late November said he would seek new funding for the portion of the offer he was financing along with a consortium of investors after KBC Aldini Capital denied its involvement in the deal.
KBC was one of four investors named by Baazov as his backers. The others were the Head & Shoulders Global Investment Fund, Hong Kong-based Goldenway Capital and Ferdyne Advisory, which is registered in the British Virgin Islands.
Baazov and the four funds were to have financed US$3.65 billion of the deal.
Amaya, which owns gambling websites PokerStars and Full Tilt, said in February it had received a non-binding proposal from Baazov to take the company private for $21 per share (US$15.66). Baazov, who owns 17 percent of Amaya, increased his offer to 24 per share in November.
(Reporting by Vishaka George in Bengaluru; Editing by Saumyadeb Chakrabarty and Martina D’Couto)
Photo of David Baazov courtesy of Reuters/Christinne Muschi