AMAYA ISSUES UPDATE ON AMF INVESTIGATION
01st June, 2015 at 16:38:59
Says independent internal investigation revealed no wrong-doing.
Amaya has updated on the ongoing investigation into its business interests by the Quebec securities regulatory authority, the Autorité des marchés financiers (the AMF), concerning its Oldford Group acquisition on June 12, 2014.
Amaya confirmed that the investigation involves employees of Amaya, including chief executive officer David Baazov and chief financial officer Daniel Sebag, but emphasised that the enquiry does not involve any personal trading by those employees.
"A court order seal has been and remains in place with respect to details of the investigation by the AMF; Amaya is not permitted by law to disclose further details surrounding the AMF investigation", the company said in an AMF-authorised statement.
"To date, the AMF has neither threatened nor initiated any legal proceedings against the Corporation or its employees. Amaya has also not been provided with any evidence that any officers, directors, or other employees violated any securities laws or regulations," said Ben Soave, retired chief superintendent of the Royal Canadian Mounted Police, a member of Amaya's Compliance Committee and an advisor to the Corporation's Board of Directors since 2012.
"Nonetheless, as we previously announced, the Corporation conducted an internal review, supervised by its independent board members with the assistance of external legal counsel, which thoroughly reviewed the relevant internal activities surrounding the Oldford Group acquisition. This review found no evidence of any violations of Canadian securities laws or regulations."
"Amaya's independent board members have been following this issue very closely and we fully support David Baazov, Daniel Sebag and Amaya's management team," added Dave Gadhia, Amaya's Lead Director and independent board member, and the former Executive Vice Chairman and chief executive officer of Gateway Casinos & Entertainment Inc. "The Corporation is not aware of any reasonable basis for proceedings against Amaya or its directors, officers or employees. We will continue to cooperate with the AMF and intend to provide further updates on the investigation if and when it is permitted."
"We have been cooperating with the AMF since the announcement of our acquisition of Oldford Group," concluded Baazov. "I believe that any concerns that I or other Amaya officers or directors violated any Canadian securities laws are unfounded and we are confident that at the end of its investigation, the AMF will come to the same conclusion."
The company noted that the AMF has not announced any proceedings nor filed any charges to date.
In related the news the company provided further updates on progress within the business reiterating that its agreement with GVC Holdings PLC with regard to the proposed sale of bwin.party in no way provides any guarantee of an acquisition agreement or the completion of any transaction.
The company also announced the completion of the sale of Cadillac Jack, Inc to AGS LLC for CAD 476 million (see previous reports).
The sale involves 100% of the issued and outstanding shares of Amaya Americas Corporation, the indirect parent of Cadillac Jack to AGS LLC, an affiliate of funds managed by Apollo Global Management, LLC.
The sale consideration is made up of CAD461 million in cash and a CAD 15 million payment-in-kind interest bearing (at 5% per annum) note.
Amaya said it had used the proceeds to repay in full Cadillac Jack's debit and associated costs.
Related News Tags: Canada, Bwin