Consortium led by Razer execs offer $4.5 billion in deal to take company private
One of the biggest companies in gaming accessories could possibly be going private.
Razer is one of the hallmark names when it comes to video game keyboards, headsets, and other accessories. With products designed for both PC and console platforms, Razer’s business has seen some steady growth throughout the last several years. Now, the company may be potentially looking at a major change, as a consortium made up of Razer executives has made an offer to purchase the company in its entirety for $4.5 billion and take it private.
It was reported earlier today by Reuters that a consortium is making an offer to take Razer private. This group of investors is led by Chairman Min-Liang Tan and Director Kaling Lim, who currently have a 60% stake in the company. They’re offering HK$4/share, which would be a valuation of HK$35 billion, translating to roughly $4.5 billion USD. The HK$4 offering per share is nearly double the stock’s current worth of HK$2.1.
According to Reuters’ sources, the decision was made on the belief that Razer is being undervalued in China in relation to other businesses. Although the offering of nearly double the stock’s current value sounds like an enticing deal, it was stated by Razer’s board that there is “no certainty” that the deal will be executed.
Following this news, shares of Razer (RAZFF) were valued at $0.36/share when markets closed on Tuesday, showing an increase after the report was made.
Neither of the parties involved has made statements following the publishing of the report. if Razer does indeed agree to the sale and goes private, it will be interesting to see what that means for the future of the company’s business. For more on the business side of the gaming industry, stick with us here on Shacknews.
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