The former chief executive of online-gambling giant Amaya Inc. has offered to take the company private in a deal that values the firm at about 3.5 billion Canadian dollars ($2.56 billion).

Under the terms of the proposal disclosed Monday, a to-be-formed entity led by former chief David Baazov would acquire all shares of Amaya for 24 Canadian dollars a share. Mr. Baazov already holds a roughly 17% position in Amaya.

A representative for Amaya couldn't immediately be reached for comment.

Mr. Baazov had been in discussions with a variety of investors to finance his proposal to buy the Montreal company he founded. Mr. Baazov said in February that he and a group of unidentified investors planned an all-cash takeover offer.

In March, he took an indefinite paid leave to fight insider-trading charges filed against him. He permanently stepped down from the role in August.

As part of the proposal, Mr. Baazov's group is prepared to make a $200 million deposit into escrow if a deal is reached.

Shares were inactive in premarket trading.

Write to Joshua Jamerson at joshua.jamerson@wsj.com

(END) Dow Jones Newswires

November 14, 2016 08:15 ET (13:15 GMT)

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