CEO with Poker Stars firm takes paid leave
MONTREAL— David Baazov is taking an indefinite, paid leave of absence as CEO and chairman of Amaya Inc., owner of the PokerStars online gambling business.
The company says Baazov is taking the leave voluntarily to focus on his response to allegations against him by Quebec’s stock market regulator and to prepare an offer to buy Amaya.
Baazov faces five charges, including influencing or attempting to influence the market price of the securities of Amaya and communicating privileged information. He has denied the accusations and said he is confident he will be found innocent of the charges.
“As always, I continue to be dedicated to doing the right thing for Amaya and all its stakeholders,” Baazov said in a statement Tuesday. “I believe that stepping down in the short term will help to avoid distraction for the company and its management while I vigorously contest all allegations made against me and pursue my bid to acquire the company.”
Baazov was charged last week along with two other people and three companies following an investigation by the Autorité des marchés financiers (AMF) into alleged insider trading. The AMF also announced last Wednesday that it executed search warrants and obtained court orders to stop the activities of 13 people who are alleged to have used their access to information to reap nearly $1.5 million from stock trades.
The company said Baazov’s role as CEO will be assumed on an interim basis by Rafi Ashkenaz, who is currently CEO of the Rational Group, Amaya’s operating business that includes the PokerStars and Full Tilt brands.
The role of chairman of Amaya’s board will be assumed by Divyesh (Dave) Gadhia, who has been a director since 2010 and chairs the committee of independent directors that would evaluate any takeover proposal from Baazov.
Based on Monday’s closing stock price, Amaya had a market value of just under $2 billion — well below what it was in early February when Baazov first indicated publicly that he was interested in buying out other shareholders.