Leading gaming equipment maker Razer, a US-based Singaporean company, said Thursday that it is going to accept an offer from a consortium of investors to buy back its shares and be delisted from the Hong Kong Stock Exchange. These investors include Razer co-founder Min-Liang Tan, another top manager of Kalin Lim, and the investment fund CVC Capital Partners. Messrs. Tan and Lim already own 57% of the company’s shares, now the consortium headed by them wants to buy out the remaining 43%. They offered 2.8 Hong Kong dollars ($ 0.36) per share, a premium of 5.6% to the company’s share price on Wednesday and 44% compared to the price at the end of October, when the talks were first reported. In total, they will pay HK $ 10.8 billion ($ 1.4 billion), giving Razer an estimated total value of $ 3.2 billion.
The company’s shares fell 8% after the news of the buyback was released. This is probably due to the fact that earlier, citing sources, it was reported about the possibility of a more significant valuation of Razer in the course of this transaction: for example, Reuters reported about $ 4.5 billion.
Razer was founded in 2005 and is headquartered in the United States, but also has an additional headquarters in Singapore from the outset. The company and in general is quite closely connected with the Asia-Pacific region thanks to the co-founder of Singaporean Min-Liang Tan and the attraction of local investors. Razer specializes in the production of advanced gaming equipment – gaming mice, keyboards, PCs and laptops for gamers, and more. In 2017, the company held an IPO in Hong Kong.