Police and Securities Regulators Raid Amaya Gaming Offices

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Amaya-Gaming-StockThe Royal Canadian Mounted Police and Quebec’s financial securities regulator the Autorité des Marchés raided the Montreal offices of Amaya Gaming, Canadian investment bank Canaccord Genuity, and Manulife Financial on Wednesday.

Shares sank 18% after the company confirmed that the regulator has launched an investigation into trading activity around the acquisition of PokerStars.

Amaya’s stock, listed as AYA.TO on the Toronto Stock Exchange is up 340% in 2014 reaching as high as $39 a share, mainly due to the news of the acquisition of the Rational Group, the owner of PokerStars in a $4.9 billion deal. The purchase was announced on June 13 but shares of Amaya started their rise a month earlier on signs of an eminent business acquisition by Amaya.

David Baazov CEO of Amaya bought PokerStars in August 2014 by selling approximately $1.7 billion of Amaya stock according to Forbes Magazine’s story The King Of Online Gambling”.

Statement from Amaya Inc.

MONTREAL, Dec. 11, 2014 – To provide clarification on a media report, Amaya Inc. (the “Corporation”) (TSX: AYA) confirmed that the Corporation and its officers are cooperating with the Autorité des marchés financiers, the securities regulatory authority in the Province of Quebec (the “AMF”), in an investigation with regards to trading activities in Amaya securities surrounding the Corporation’s acquisition of Oldford Group in 2014.

To the Corporation’s knowledge, this does not involve any allegations of wrongdoing by the Corporation. Amaya will continue to cooperate, if and as requested, consistent with our practice to always cooperate with regulatory authorities.

The Corporation will continue to monitor the investigation if and as it proceeds. The investigation has had no impact on Amaya’s business operations, employees or companies.

 

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