Sohu offered a 57% premium on Changyou’s privatization offer.

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[Abstract] If the proposed transaction is completed, Changyou will become an indirect wholly-owned holding subsidiary of Sohu, complete privatization, and Changyou will delist from Nasdaq.
On September 9, Tencent Technological News announced that Sohu had submitted a preliminary non-binding offer to the board of directors of Changyou, its holding subsidiary, proposing cash acquisition of Class A common shares, including Class A common shares represented by American Depositary Receipt (ADS), which had not yet been held by Sohu. The acquisition price was Class A common shares per share. Common stock is $5.00, or $10.00 per ADS.
Since Sohu already owns all Class B common shares of Changyou which are in circulation, if the proposed transaction is completed, Changyou will become an indirect wholly-owned subsidiary of Sohu, complete privatization, and Changyou will withdraw from Nasdaq.
The proposed purchase price is 69% higher than the closing price premium of Changyou on September 6, 2019, and 57% higher than the average closing price premium of Changyou in the past 30 trading days.
Since Sohu has more than 90% of the voting rights for Changyou, according to section 233 (7) of the Cayman Islands Company Law (Amendment), the proposed transaction can be subject to statutory summary merger procedures, which will be merged with Changyou by Sohu’s newly established wholly-owned subsidiary. Sohu has informed Changyou Board that Sohu only intends to carry out the proposed acquisition transaction in the offer, and has no intention of selling its own Changyou shares or participating in any other transaction including Changyou.
Sohu expects Changyou Board of Directors to set up a special committee composed of independent directors to consider Sohu’s proposed transaction, to consider Sohu’s offer with the assistance of external financial advisers and legal advisers, and to negotiate with Sohu on behalf of Changyou.
The offer represents only Sohu’s initial intention and does not cover all the matters that must be covered in the final agreement to be signed by the proposed exchange, nor does it impose binding rights and obligations on either party. Both parties are bound only after signing the final agreement document. Therefore, there is no guarantee that Sohu’s offer will lead to the final completion of the proposed transaction or similar transaction, nor can there be any possible terms if the transaction has been completed.