Amaya's Internal Review Finds no Evidence of Violations. Cadillac Jack Sold

20:25
02 Jun

Amaya’s slots machine subsidiary Cadillac Jack was sold off to AGS, an entity related to Apollo Global Management, for $380m. The sale is a part of Amaya’s strategy to focus more on its core business, mainly PokerStars and Full Tilt.

Cadillac Jack is supplier of innovative games and systems to the global gaming industry as it creates variety of slots machines and bingo games. Amaya’s chairman and CEO David Baazov said that Cadillac Jack, which was purchased by Amaya, in 2012 has expanded its business under their ownership.

We are extremely pleased that we have been able to crystallize on the value that has been created within Cadillac Jack over the past two-and-a-half years for the benefit of our shareholders. David Baazov, www.amaya.com
At the same time that Canadian gaming giant announced the completion of the sale of Cadillac Jack, the company revealed that its internal review didn’t find any evidence of violations of Canadian Security laws. Even though Autorité des Marchés Financiers didn’t initiate any legal proceedings against Amaya, the corporation has conducted an internal review.
The internal review was conducted by the Amaya’s board independent members with the assistance of the external legal counsel. No evidence of any violations of Canadian securities and regulatory laws were found. Amaya’s lead director Dave Gadhia said that even though the company is not aware of the basis for proceedings against Amaya, they will continue to cooperate with Autorité des Marchés Financiers.
Amaya is currently under the AMF investigation concerning trading securities revolving around $4.9 billion acquisition of Rational Group. Company’s Canadian offices were raided back in December and Autorité des Marchés Financiers was granted approval to seize documents and records of communications from Baazov and the chief financial officer Daniel Sebag. Gadhia also explained that Amaya’s independent board members support David Baazov, Daniel Sebag and the entire Amaya’s management team.
However it seems that there is still no evidence that Amaya’s directors and other employees have violated any Canadian securities laws. Amaya currently can’t provide any information related to AMF investigation as it is currently under court-ordered seal.
The company said that they will continue to cooperate with the AMF, the securities regulatory authority in the Province of Quebec, and that they will provide updates on investigation if and when it’s permitted.
David Bazzov strongly believes that at the end of investigation, AMF will come to the same conclusion as the Amaya did.

Did you like this article?