Amaya looks to sale of entire B2B business

Amaya Gaming said it is considering the sale its entire B2B business in a bid to maximise shareholder value and repay debt.

The Toronto-based firm’s B2B operations include Cadillac Jack, Diamond Game Enterprises, and its online gaming platform Amaya Online.

The firm recently sold its Ongame poker network to NYX Gaming in a statement to the market and previously outlined its intention to sell off its land-based subsidiary Cadillac Jack, but Amaya said it would also “explore various strategic opportunities” to “divest its other B2B assets”.

“The intention is to examine strategic alternatives for these B2B assets that will maximize shareholder value by facilitating the repayment of indebtedness and/or the repurchase and cancellation of the corporation’s common shares,” the firm said.

The disposal of its B2B interests would see Amaya focus solely on its newly established B2C business following its $4.9bn buyout of PokerStars and Full Tilt parent company Rational Group while the move could also free up room for further acquisitions.

A spokesperson for the Rational Group this afternoon told eGR “the core platform for growth for Amaya is the Rational Group holdings” but refused to speculate on any future acquisitions.

Amaya also revealed it would purchase and cancel up to 5,399,631 common shares over a one-year period, around 5% of the firm, in a bid to increase shareholder value.

The value of Amaya shares tanked in December following news of an ongoing investigation into its acquisition of the Rational Group by financial regulators in Quebec, Canada.

“The corporation intends to buy back common shares for cancellation from time to time when it determines the price at which they are trading is undervalued and that such purchases provide the best use of available cash,” Amaya said.

The buyback will be funded through the proceeds of certain divestments and cash on hand, and is subject to approval by the Toronto Stock Exchange.