Tan Min Liang, Co-Founder, CEO and Executive Director of Razer, at a press conference on Razer’s proposed listing at the JW Marriott Hotel Hong Kong in Admiralty.
Dickson Lee | South China Morning Post | Getty Images
Razer shares fell more than 8% on Thursday after a consortium including co-founder Tan Min-Liang made an offer to privatize the Hong Kong-listed gaming hardware company.
The consortium, which also includes private equity firm CVC Capital Partners, has offered to pay up to HK $ 10.79 billion ($ 1.38 billion) to buy all the remaining shares, according to a filing. regulatory.
As part of the deal, the group would buy those shares at HK $ 2.82 apiece, up 5.6% based on Razer’s closing price on Wednesday.
The company has stated that the price of the offer is final and will not be increased.
Razer, which makes laptops, PC peripherals and other products for gamers, went public in 2017 with an initial public offering price of HK $ 3.88 per share.
For a brief period, the stock traded above HK $ 4 but failed to maintain that level.
The relatively low participation of institutional investors and the prolonged low liquidity of transactions negatively impacted the share price, Razer said in its regulatory filing.
Founded in 2005, Razer is headquartered in Irvine, California, but also has regional headquarters in Shanghai, Singapore, and Hamburg, Germany.
Credit Suisse is the financial advisor for the proposed transaction.