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16-11-2021, 06:05 PM
Take-private deal could value Razer at up to $4.5 bln -sources
* Consortium to offer up to HK$4/shr, eyes NY listing, sources say
* Aims to value company at up to HK$35 bln -sources
* It is also in talks with CVC Capital on deal, say sources
By Julie Zhu and Kane Wu
November 16, 2021 4:26 PM +07
HONG KONG, Nov 16 (Reuters) - A consortium led by top executives of Razer Inc plans to value the Hong Kong-listed maker of gaming hardware at up to HK$35 billion ($4.5 billion) in a deal to take it private, said two people with direct knowledge of the matter.
Chairman Min-Liang Tan and non-executive director Kaling Lim, with a combined stake of nearly 60% in Razer, lead the group offering up to HK$4 a share, the two sources said, or almost double its average price of HK$2.1 over the past month.
The move comes as the consortium believes Razer, based in the United States and Singapore, has been undervalued in Hong Kong, where investors typically pay more attention to tech firms from mainland China, they added.
The sources declined to be identified because of confidentiality constraints.
Razer declined to comment. Tan and Lim also declined to comment on a Reuters query made via the company.
Shares of Razer were up more than 10% by 0521 GMT on Tuesday, after giving up some of their increase of 23% in afternoon trade following the Reuters report.
In late October, the company said in a filing Tan and Lim were in preliminary talks with financial investors to explore the possibility of a transaction.
The consortium is also in talks with private equity firm CVC Capital Partners for the buyout, said one of the two sources, and two others with knowledge of the matter.
Buyout firm KKR (KKR.N) has also studied the deal but has yet to decide whether to invest, said the first two sources and another person.
CVC and KKR declined to comment.
The talks have advanced and the consortium aims to announce the deal by the end of 2021, the first two sources said.
It aims to eventually list Razer in New York to exploit higher valuations for tech stocks, they added.
More details in https://www.reuters.com/business/razer-e...021-11-16/
* Consortium to offer up to HK$4/shr, eyes NY listing, sources say
* Aims to value company at up to HK$35 bln -sources
* It is also in talks with CVC Capital on deal, say sources
By Julie Zhu and Kane Wu
November 16, 2021 4:26 PM +07
HONG KONG, Nov 16 (Reuters) - A consortium led by top executives of Razer Inc plans to value the Hong Kong-listed maker of gaming hardware at up to HK$35 billion ($4.5 billion) in a deal to take it private, said two people with direct knowledge of the matter.
Chairman Min-Liang Tan and non-executive director Kaling Lim, with a combined stake of nearly 60% in Razer, lead the group offering up to HK$4 a share, the two sources said, or almost double its average price of HK$2.1 over the past month.
The move comes as the consortium believes Razer, based in the United States and Singapore, has been undervalued in Hong Kong, where investors typically pay more attention to tech firms from mainland China, they added.
The sources declined to be identified because of confidentiality constraints.
Razer declined to comment. Tan and Lim also declined to comment on a Reuters query made via the company.
Shares of Razer were up more than 10% by 0521 GMT on Tuesday, after giving up some of their increase of 23% in afternoon trade following the Reuters report.
In late October, the company said in a filing Tan and Lim were in preliminary talks with financial investors to explore the possibility of a transaction.
The consortium is also in talks with private equity firm CVC Capital Partners for the buyout, said one of the two sources, and two others with knowledge of the matter.
Buyout firm KKR (KKR.N) has also studied the deal but has yet to decide whether to invest, said the first two sources and another person.
CVC and KKR declined to comment.
The talks have advanced and the consortium aims to announce the deal by the end of 2021, the first two sources said.
It aims to eventually list Razer in New York to exploit higher valuations for tech stocks, they added.
More details in https://www.reuters.com/business/razer-e...021-11-16/
Specuvestor: Asset - Business - Structure.