PokerStars owner Amaya says ‘no deal,’ ends merger talks with William Hill

MONTREAL — The Montreal-based company that owns PokerStars and the British betting company William Hill PLC have called off talks that could have resulted in a merger of equals.

The board of PokerStars owner Amaya Inc. (TSX:AYA) has been reviewing strategic alternatives since February 2016, after founder David Baazov indicated he wanted to buy out other shareholders and take the company private.

Since then, Baazov has been charged with five offences including communicating privileged information and attempting to influence the market price of Amaya stock. Baazov and two associates have pleaded not guilty.

Amaya said Tuesday that Baazov has said he’s still interested in taking the company private but he hasn’t made an offer. The board said it would consider a bona fide offer from any party but its review of strategic alternatives has concluded.

“Amaya is a strong and growing company with experienced management and a proven strategy to deliver profitable growth and shareholder value,” Divyesh (Dave) Gadhia, chairman of Amaya’s board of directors, said in a statement.

“Together with our financial advisors, we evaluated a wide range of strategic alternatives to maximize shareholder value and have concluded that remaining an independent company is in the best interest of Amaya’s shareholders at this time.”

Amaya shares closed Monday at $20.33, giving the company a market value of nearly $3 billion.

The company had disclosed on Oct. 7 that it was in discussions about a possible merger with William Hill, which said it was looking for a way to diversify its betting business.

That was followed last week by objections from Parvus Asset Management, which owns 14.3 per cent of William Hill.

Both companies said Tuesday that the talks have ended without a deal.

“After canvassing views from a number of William Hill’s major shareholders, the board has decided that it will not pursue discussions with Amaya. Accordingly, the board has informed Amaya that it is withdrawing from discussions and wishes Amaya well for the future,” the British bookmaker said Tuesday.

The Canadian Press