Mystery investor snaps up Amaya securities

Mystery surrounds Hong Kong-based Discovery Key Investments Limited (DKI), an investment vehicle wholly owned by a Mr. Tang Hao, that has acquired 9,105,500 common shares in the share capital of Amaya Inc. on the secondary market at a price of $22.40 per share.

Hao’s purchase represents an aggregate price of $203,963,200 and an acquisition of approximately 6.25 percent of the issued and outstanding Common Shares of Amaya Inc, an Early Warning Report indicates.

A press statement released by Hao confirmed DKI previously held indirect beneficial ownership of 7,200,000 Common Shares, representing approximately 4.94 percent of the issued and outstanding Common Shares of Amaya Inc.

Hao now, however, holds indirect beneficial ownership of 16,305,500 Common Shares, representing approximately 11.19 percent of the issued and outstanding Common Shares in the company, following this latest transaction.

Hao said he had indirectly acquired the Common Shares for investment purposes and that, depending on circumstances, may acquire additional, or dispose of all or a portion of the, securities he currently holds.

Our readers will recall, former chief executive officer, David Baazov, who is currently under investigation by the AMF, significantly lowered his 18.9 percent stake in Amaya Inc to around 3.8 percent when he sold approximately 12 million shares in the company for a total of C$267.7 million on March 31, 2017 and 7 million shares for a total of C$133 million on March 8, 2017.

Amaya Inc. had announced just days before Baazov’s first divestment, a debt restructuring package that effectively locked the former executive out of indirectly or directly acquiring control of the company (see previous reports).

“At the request of certain lenders, the amendment also modifies the change of control provision to remove the ability of a certain current shareholder to directly or indirectly acquire control of Amaya without triggering an event of default and potential acceleration of the repayment of the debt under the credit agreement for the first lien term loans”.

General industry consensus at the time was that “a certain current shareholder” may refer to Baazov.