Thu, Aug. 25, 11:52 AM
- Chinese game maker KongZhong (KZ +0.5%) says it's gotten a revision to a longstanding go-private offer from its chairman and chief executive officer.
- A new nonbinding offer letter has come from Leilei Wang and his buyer group (including IDG-Accel China Growth Fund) offering to acquire outstanding shares for $7.18/ADS, about an 11.5% premium to current price.
- A previous offer from the buyer group had come in at $8.56/ADS in June 2015.
- The board's special committee is evaluating the revised proposal, the company says.
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.