Dubai Firm Denies Backing Baazov in Amaya Bid, Report Says

Updated on
  • KBC Aldini has filed a complaint with U.S. regulators: Globe
  • Baazov had named KBC as backer in offer to take Amaya private

A Dubai investment firm denied it’s backing a $6.7 billion offer by Amaya Inc. founder David Baazov to take the gaming company private and said it has filed a complaint with U.S. securities regulators, according to a Canadian newspaper.

Amaya fell 6 percent to C$18.67 at the close in Toronto after The Globe and Mail reported that KBC Aldini Capital Ltd. said it had “no involvement” whatsoever in the proposed deal. The stock earlier fell as much as 9.5 percent.

Kalani Lal, chief executive officer of KBC, told the paper in phone interview from Dubai he didn’t know what Amaya was and his company hadn’t held any discussions. KBC said it has filed a complaint with the U.S. Securities and Exchange Commission about using “KBC’s name fraudulently.”

Eric Hollreiser, a spokesman with Amaya, said while the company has engaged in discussions with Baazov’s advisors over his proposal, no agreement has been reached and there’s no assurance one will be.

“Prior to entering into any agreement with Mr. Baazov with respect to a transaction, Amaya would conduct appropriate due diligence regarding Mr. Baazov’s financing sources,” Hollreiser said in an e-mail.

Baazov, who took an indefinite leave this year amid a Quebec insider-trading probe, made a cash offer to Amaya last week.

The $4.1 billion equity portion of the offer comprised $3.65 billion in commitments from sponsors. In a filing, 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.

A call to the phone number for KBC’s Dubai office listed on its website went unanswered. The Quebec securities regulator, Autorite des Marches Financiers, declined to comment as Baazov is still under investigation in the province.

— With assistance by Sandrine Rastello

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