Sohu chairman submits PE-backed take-private offer
NASDAQ-listed Chinese internet company Sohu has received a take-private proposal from its chairman and CEO alongside an unnamed private equity firm.
According to a statement, Charles Zhang and a third-party PE firm want to invest in Sohu via a special purpose entity. The stock purchase would be based on the last closing price on the day before a subscription is signed. However, it subject to a maximum purchase price of $50 per share. Meanwhile, the buyer group would pay up to $600 million in cash to acquire convertible preferred stock in the company.
A special financing committee within Sohu's board will consider the offer.
Sohu listed on NASDAQ in July 2000. The group runs a variety of internet businesses under different brand names, including information web portal Sohu.com, search engine Sogou.com, online games Changyou.com and online video site TV.sohu.
Revenue came to $1.7 billion last year, up 19% from 2013. Online games accounted for the bulk of revenue, contributing $652 million, down 3% year-on-year. The company's net loss widened to $171 million from $18 million in 2013.
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