David Baazov, the ex chairman and CEO of Canadian based Amaya Inc had submitted a proposal to takeover Amaya Inc and take the company private earlier this month. Baazov still has a 17 percent stake in Amaya and is the largest shareholder.

Baazov sent in a proposal highlighting four financial backers who were Head and Shoulders Global Investment Fund SPC, KBC Aldini Capital Ltd, Ferdyne Advisory and Goldenway Capital SPC. Amaya Inc’s share prices went up once the bid was made public but since then the proposal has been questioned after Dubai based KBC Aldini Capital Ltd announced that Baazov was fraudulently using KBC’s name and that it was not part of the consortium; its purported backing for the deal was given without the firm’s knowledge or consent. This turn of events threw Baazov’s offer into question.

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Following these allegations, Baazov issued a statement on the 23rd of November, acknowledging that KBC wasn’t involved and that he and his advisors were deceived by unidentified persons who claimed to be KBC reps. On the same day, Hong Kong-based Goldenway Capital, one of Baazov’s financiers stated that they were prepared to increase their commitment in order to ensure that Amaya’s bid was successful.

Baazov has made it clear from the start of this year that he was interested in acquiring Amaya Inc but his initial attempt at a proposal was stalled after insider trading allegations was filed against him by Canadian authorities. Baazov has maintained his innocence in the matter and is continuing to fight the case. This time around his second attempt has also come under scrutiny due to KBC’s statement. However Baazov has bounced back by getting his two Hong Kong based investors to issue binding equity commitment letters to finance the takeover.

In a statement, Stanley Choi, Head and Shoulders’ chairman said, “We continue to support David Baazov,” and also added that he’s ‘not at all’ concerned about what happened with KBC in the past week. Nevertheless, he declined to comment on the structure of the transaction or on his firm’s increased commitment.

KBC was not part of the new equity financing. Furthermore, the SEC filings on the 25th of Nov.,  did not mention Amaya’s British Virgin Island backer, Ferdyne Advisory Inc., which was cited in Baazov’s previous press release on the 14th of Nov. Thereby suggesting that the firm’s involvement was as illusory as KBC’s.

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