Amaya Gaming Shares Rebound After Buy Back Plans Announced
One of the most interesting and talked about acquisitions of 2014 in the gaming world was that of Amaya Gaming purchasing PokerStars. As we reported at the time before the official announcement was made there was a lot of speculation and rumors which sent the share price of the Canadian-based Amaya sky rocketing. In fact the share spike caused an investigation by Quebec’s securities watchdog to check for irregular activities.
The December 12 confirmation of the investigation into Amaya over the PokerStars acquisition by the Quebec securities watchdog resulted in the share price tanking. In an effort to return to the highs experienced at the time of the acquisition. Amaya announced they would be repurchasing about 5 percent of its outstanding stock as it felt that the current share price did not reflect the underlying value of the company. This announcement had a positive effect on the share price as on Monday it was trading up by about 12 percent making it its highest level since the security watchdog launched their investigation into possible insider trading involving the PokerStars acquisition.
Before the December 12 investigation announcement Amaya’s shares reaches a record high of $39.25 which was more than four times the share price prior to the $4.9 billion acquisition. While time will tell if this is enough to ensure the share price returns to the levels prior to December 12, both Amaya and the Quebec securities regulator l’Autorite des marches financier have not commented on the progress of the investigation.