Razer Exec is offering to take over the private company at a valuation of S $ 4.3B – Wired PR Lifestyle Story

Razer today (December 2) announced a team led by its CEOs He proposed taking over a Hong Kong-listed private company, An agreement valued at HK $ 24.7 billion (S $ 4.3 billion).

The group – founder and chairman Tan Min-Liang and non-executive director Lim Kaling, which owns about 57 percent of the company – is offering HK $ 2.82 for a remaining share of the company.

They believe that Razer has suffered from low trading volumes and has been underestimated in Hong Kong, hence this privatization offer.

The bid price is about a 44% premium to Razer’s closing price on October 28, the day before the commercial break to announce that the president and others were talking about an agreement with the company. It is also a 5.6 per cent premium for Wednesday’s close.

In late October, a presentation by the company revealed that both Tan and Lim were in preliminary talks with financial investors to examine the potential transaction involved in the company, which may or may not lead to a general offer of shares.

The group is also reportedly in talks with private equity firm CVC Capital Partners.

Razer performance so far

In its latest August financial earnings report, Razer registered Net profit of $ 31.3 million In the first half of 2021, compared to a net loss of $ 17.7 million in the same period last year.

It also had revenue of $ 752 million, up 68 percent year-on-year, driven by strong demand, market share in the hardware business, and continued growth in the services segment.

The United States accounted for 42% of first-half revenue.

Razer was priced at HK $ 3.88 per share in 2017 at the Asian Financial Center. However, its shares fell more than half last month from a peak of HK $ 3.36 in February this year.

Its shares have risen 30 percent to a five-month high since Tan and Lim filed their investor talks in October.

Featured Image Credit: Dickson Lee