Sogou announced that it signed the final privatization agreement and became a wholly-owned subsidiary of Tencent

0
94

Sina science and technology news on the evening of September 29, Beijing time, Sogou (NYSE: SOGO) and its parent company Sohu (NASDAQ: Sohu) announced today that Sogou has signed the final privatization agreement with THL A21 limited, Titan supernova limited and Tencent mobility limited.
THL A21 limited, titansupernova limited and Tencent mobility limited are all direct or indirect wholly-owned subsidiaries of Tencent Holdings Limited. According to the agreement, Titan supernova Limited will merge with Sogou in the form of all cash transaction, and the merged Sogou will become an indirect wholly-owned subsidiary of Tencent.
Sogou announced on July 27 this year that the company’s board of directors has received a preliminary non binding proposal letter from Tencent, which proposes to purchase all the issued common shares of Sogou, including Sogou’s issued common shares representing ads, with cash of US $9.00 per common share or ads. On July 31, Sogou announced the establishment of a special committee to assess the privatization proposals received from Tencent on July 27.
Compared with the closing price on July 24, 2020 (the last trading day before Sogou announced to receive Tencent’s “privatization” proposal), the privatization price premium was about 56.5%, which was 83.0% higher than the volume weighted average price premium of Sogou in the last 30 trading days before Sogou received the “privatization” proposal.
The privatization is expected to be completed in the fourth quarter of 2020. After the transaction, Sogou will become an indirect wholly-owned subsidiary of Tencent, and Sogou ads will be delisted from the NYSE.