Nov. 27, 2015, 1:33 PM
- In the holiday lull, Chinese game maker KongZhong (KZ -0.4%) said it's approved a sale of most of its stake in Ourgame International to Glassy Mind Holdings, for $30.9M.
- The deal involves selling 39.2M shares of Ourgame at a price of HK$6.1062 -- coming to about $30.9M with about 80% in immediate cash, and the remainder in cash on Sept. 30, 2016.
- KongZhong had held the shares since before Ourgame went public in Hong Kong in June 2014. It will retain a stake of about 2.6% (20.74M shares).
Nov. 3, 2015, 1:39 PM
- Chinese game maker KongZhong (NASDAQ:KZ) says the special board committee charged with examining a go-private offer has retained financial advisers and legal counsel for the evaluation.
- Duff & Phelps and Skadden, Arps, Slate, Meagher & Flom are assisting in the committee's look at a June 29 offer from Chairman/CEO Leilei Wang to buy the rest of the company for $8.56/ADS.
- Shares are down 0.4% today to trade at $6.91; when proposed, the deal was at about a 20% premium over 30-day average price, vs. a 23.9% premium today.
- Previously: KongZhong up 6.5%, forms committee to probe go-private offer (Jul. 08 2015)
- Previously: KongZhong's go-private offer: Too low, or shaky? (Jun. 30 2015)
Jun. 30, 2015, 1:35 PM
- China's going-private wave came to online games publisher KongZhong (NASDAQ:KZ) as Chairman/CEO Leilei Wang proposed buying the rest of the company for $8.56/ADS -- about a 20% premium over 30-day average ADS price -- but that might still be too low, argues SA contributor China Stock Research.
- Its trailing PE multiple, about 17.8x, trails Chinese peers like Feiyu (24.2x) and Ourgame (over 30x), and with a light asset structure, the company has robust cash flow (AOCF of $0.87/year per ADS).
- On the other hand, sliding Chinese markets could give some buyout backers cold feet, even with solid backers like KongZhong has, says Doug Young.
- IDG's behind management's offer, but the KongZhong deal may be the last of this wave of going private for U.S.-listed China companies until investors get a better handle on the China market's stability, he says.
- KongZhong picked up 4.7% on Monday, and is down 0.7% today, to $7.34. The bidding consortium held about 25% of the company prior to the offer, according to the fiscal 2014 annual report.
KongZhong Corp. provide wireless interactive entertainment, media and community services to mobile phone users, and internet games services. The company operates through the following segments: Mobile Games, Wireless Value Added Services (WVAS), and Internet Games. The Mobile Games segment... More
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