PokerStars owner Amaya will remain independent

Merger talks with British company end without deal

MONTREAL— Following the collapse of merger talks with a British betting company, Amaya Inc. says it’s pursuing options for making a $400-million (U.S.) deferred payment related to its purchase of the PokerStars online gambling business in 2014.

The Montreal-based company is due to make the payment on Feb. 1, 2017, as part of its acquisition of the Rational Group — and several gaming brands including PokerStars — for $4.9-billion.

Amaya said Tuesday that it’s pursuing “various non-dilutive options” to supplement its cash resources, including excess cash flow from operations and about $99 million of unrestricted cash on its balance sheet as of Sept. 30.

Earlier, British betting company William Hill PLC and Amaya announced they had called off merger talks that they disclosed earlier this month amid reports that a possible deal was in the works.

“After canvassing views from a number of William Hill’s major shareholders, the board has decided that it will not pursue discussions with Amaya,” the British bookmaker said Tuesday. Divyesh Gadhia, chairman of Amaya’s board of directors, said the company evaluated a wide range of strategic alternatives to maximize shareholder value and concluded that remaining an independent company is in the best interest of Amaya’s shareholders. “Amaya is a strong and growing company with experienced management and a proven strategy to deliver profitable growth and shareholder value,” Gadhia said in a statement.

Amaya’s independent directors have been reviewing strategic alternatives since February, after founder David Baazov indicated he wanted to buy out other shareholders and take the company private.

Amaya said Tuesday that Baazov has said he’s still interested in taking the company private but he hasn’t made an offer.