Tan Min Liang, the co-founder, CEO and government director of Razer, at a press convention on the proposed itemizing of Razer at JW Marriott Resort Hong Kong in Admiralty.
Dickson Lee | South China Morning Publish | Getty Photos
Razer shares tumbled greater than 8% Thursday after a consortium that features co-founder Tan Min-Liang made a suggestion to take the Hong Kong-listed gaming {hardware} firm non-public.
The consortium, which additionally contains non-public fairness agency CVC Capital Companions, has provided to pay as much as 10.79 billion Hong Kong {dollars} ($1.38 billion) to purchase all remaining shares, in response to a regulatory submitting.
As a part of the deal, the group would purchase these shares at 2.82 Hong Kong {dollars} a bit, representing a 5.6% upside primarily based on Razer’s closing value Wednesday.
The corporate mentioned the provide value is ultimate and won’t be elevated.
Razer, which makes laptops, PC peripherals and different merchandise for avid gamers, went public in 2017 with an preliminary public providing value of three.88 Hong Kong {dollars} a share.
For a short interval, the inventory traded above 4 Hong Kong {dollars} however failed to carry onto that degree.
Comparatively low institutional investor participation and extended low buying and selling liquidity has had a adverse affect on the share value, Razer mentioned in its regulatory submitting.
Based in 2005, Razer is headquartered in Irvine, California, but in addition has regional headquarters in Shanghai, Singapore and Hamburg, Germany.
Credit score Suisse is the monetary advisor on the proposed deal.
