Razer Shareholders Agree for Company to Go Private at $3.17 Billion USD Valuation

Razer is now planning to go private again after it obtained approval from an overwhelming majority of shareholders. According to a new report from Reuters, the gaming peripheral giant is looking to purchase all remaining shares and take the company private under chairman and founder Min-Liang Tan and non-executive director Kaling Lim, who own roughly 57% of the company.

The deal would value the Hong Kong-listed company at $24.7 billion HKD (approximately $3.17 billion USD) and translate to a purchase price of $2.82 HKD (approximately $0.36 USD) per share for the remaining shares. The current offer price marks a 44% premium over the company’s closing price on October 28, 2021, a day before Razer went into a trading halt due to discussions of a deal. It’s also 5.6% above market close on Wednesday.

Razer posted a 33.3% revenue growth year-on-year for 2021, and annual revenue reached $1.6 billion USD, a marked increase from the $1.2 billion USD the year prior. However, the company warns that “uncertainties and challenges” arising from geopolitical tensions and the ongoing COVID-19 pandemic could adversely affect its performance in the near future.

Elsewhere in the gaming industry, private equity firm Blackstone Group is eyeing a potential acquisition of Ubisoft.
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