Amaya Gaming says it won’t offer any guidance for its 2016 earnings in light of CEO David Baazov’s bid to take the company private.
On Wednesday, the committee of independent directors appointed by the Montreal-based Amaya to consider Baazov’s $21-per-share offer released some updates on the process, including the fact that it had yet to receive a formal offer, despite Amaya’s previous claim that such an offer was expected “on or about the end of February.”
While it awaits the offer, the parent company of online gambling brands PokerStars and Full Tilt also said it had implemented some restrictions on Baazov’s management of Amaya, including how much confidential company info can be shared with the members of Baazov’s investment group.
There’s still no word on who or what comprises the group Baazov has allegedly assembled to make his alleged privatization bid. UK-listed gambling technology providers Playtech have been rumored to be sniffing around Amaya, although whether they’re aligned with Baazov or pursuing a solo bid is anyone’s guess.
Of greater interest to the wider gaming world is Amaya’s announcement that so long as Baazov continues to threaten to submit an offer, the company wouldn’t be offering any guidance on its 2016 earnings when it reports its Q4 and FY15 results on March 14.
That last decision is all the more interesting given the one-third plunge in Amaya’s share value that followed the company’s Q3 earnings report, during which it revealed it wouldn’t be hitting its 2015 earnings guidance. Amaya’s shares plunged as low at C$18.08 following Wednesday’s announcement before rallying to close down around 2% to $19.50.
On the plus side, Amaya says its Q4/FY 15 report will come out after the market closes on March 14, breaking with Amaya’s tradition of releasing such info before the market opened. Suffice it to say, many west coast analysts who resented having to rise at 4am to cover these reports are grateful.