CEO, chairman offer to take YY private

Reuters News
Posted: Jul 09, 2015 9:15 AM

(Reuters) - YY Inc said Chairman Jun Lei and Chief Executive David Li offered to take the China-based video streaming website operator private in a deal that values the company at about $3.69 billion.

The $68.50 per American depositary share cash offer represented a premium of 17.4 percent to YY's Wednesday close. The stock was up 6 percent at $61.85 in premarket trading.

A string of Chinese tech companies, including Momo Inc and Qihoo 360 Technology Co Ltd, have received proposals to drop their U.S. listings and go private.

Many Chinese tech executives are betting on higher valuations in China, where stock markets have recently rallied.

Li and Lei already own about 35.7 percent of YY's shares, representing about three-fourth of the aggregate voting power, the company said on Thursday.

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YY had 53.8 million outstanding ADS as of March 31.

The company, which recorded revenue of $185.6 million for the quarter ended March 31, said it would form a special committee comprising independent directors to evaluate the offer.

(Reporting by Kshitiz Goliya in Bengaluru; Editing by Joyjeet Das)