Chinese video-games takeover bid may start a trend
10/09/2019 04:28
(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own.)
By Robyn Mak
HONG KONG, Sept 10 (Reuters Breakingviews) - Internet
pioneer Sohu is offering to buy out minority investors in a
U.S.-listed gaming subsidiary for a near-70% premium. The move
looks opportunistic: the shares, hit by Beijing’s regulatory
crackdown, are at less than half of a 2017 peak. Peers could
lure bargain hunters too.
Full view will be published shortly.
On Twitter https://twitter.com/mak_robyn
CONTEXT NEWS
- Chinese search-engine to video-streaming group Sohu on
Sept. 9 made an offer to buy out minority shareholders in online
game developer Changyou.com, a U.S.-listed subsidiary. Sohu has
offered $5 per ordinary share and $10 per American Depositary
Share, in cash, a 69% premium to the closing price of the ADS on
Sept. 6.
- The deal, if completed, would turn Changyou.com into a
privately held, wholly owned subsidiary of Sohu. Sohu holds
over 90% of total voting power.
- Changyou said a special committee of its board, composed
solely of independent directors, would consider the proposed
transaction.
-Shares of Changyou closed up 49.3% to $8.84 on Sept. 9.
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Changyou statement https://www.prnewswire.com/news-releases/changyoucom-announces-receipt-of-a-preliminary-non-binding-proposal-to-acquire-the-company-300913949.html
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(Editing by Clara Ferreira Marques and Sharon Lam)
((robyn.mak@thomsonreuters.com; Reuters Messaging:
robyn.mak.thomsonreuters.com@reuters.net))