GSMGW - Glory Star New Media inks deal to go private
- Glory Star New Media ( GSMG ) said Monday it will be acquired by Cheers Inc. in a deal that would take the firm private.
- Each ordinary share of GSMG issued and outstanding will be cancelled in exchange for the right to receive $1.55 in cash without interest.
- The per share consideration represents a premium of 76% over GSMG's closing price of $0.88/share on Mar. 11, the last trading day prior to the fim announcing it received a "going-private" proposal.
- The consideration also represents an increase of ~22% over the $1.27/share initially offered by GSMG CEO Bing Zhang .
- Once the merger closes, Cheers will be beneficially owned by a group of rollover shareholders, including Zhang and certain financial investors.
- The buyer group beneficially owns ~72.8% of outstanding GSMG shares.
- The merger will be funded through a combination of cash contributions from certain members of the buyer group and rollover equity contributions from the rollover shareholders.
- The deal is expected to close in H2 of 2022.
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Glory Star New Media inks deal to go private