To repay debt and buy back common shares
Canadian gaming firm Amaya Gaming Group said in a trading update Monday that it intends "exploring strategic opportunities" to divest its B2B assets including gaming solutions business, Cadillac Jack Inc. and Diamond Game.
The company confirmed it is currently evaluating non-binding proposals from unnamed potential buyers for its Cadillac Jack Inc. business.
Amaya will use funds from the proposed sale of these assets to repay debt and/or repurchase and cancel common shares which it believes are currently undervalued.
The company is planning to make a normal course issue bid to purchase and cancel upwards of 5 million common shares over a 12 month period, representing around 5 percent of the current public float.
"Amaya believes that its current share price does not reflect the underlying value of the Corporation, and that purchasing shares for cancellation will increase the proportionate interest of, and be advantageous to, all remaining shareholders," a company statement said.
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