16 Nov 2021
“Take-Private” Deal to Get Razer Inc Valued up to $4.5 Billion
The Index Today
The Hong-Kong listed gaming hardware company aims to boost valuation through a take-private deal to HK$35 billion. Non-executive director Kaling Lim and Chairman Min-Liang hold a large stake of over 60% in the company and are leading efforts to offer HK$4 dollar a share. Currently, the average share price of Razer values at HK$2.1.
On Tuesday afternoon trading, the shares moved up 23%, and up more than 10% at 0521 GMT. During last month in October, both executives were conducting talks with potential investors and determine the viability of share transactions. CVC Capital Partners are also in talks to consider a buyout according to sources.
It is expected that the final deal should be announced by the end of the year with plans to list Razer in the New York stock exchange. The company was founded back in 2005 in the US and Singapore, starting off with manufacturing of gaming hardware. During the first half of 2021, Razer recorded a net profit of $31.2 million due to covid lockdowns. Prior to 2021, the company experienced a net loss of $17.7 million.
Razer went public in 2017 and was listed at the HK$3.88 per share. The new deal will allow investors to take advantage of undervalued shares and tap into the market. In 2021, $8.15 billion worth of take-private deals were concluded for Hong Kong listed companies according to Refinitiv data.