iDreamSky Technology Ltd. on Monday said its chairman and chief
executive has bid to take the company private, valuing the game
publisher at about $620 million.
Michael Xiangyu Chen's bid of $14 an American depositary share
represents a 3.8% discount to Friday's closing price and comes less
than a year after the company went public in the U.S.
Shares dropped 5.4% to $13.78 premarket but had surged 74% over
the past month. iDreamSky went public at $15 a share last
August.
iDreamSky, which calls itself the largest independent mobile
game publishing platform in China, said its board has formed a
special committee of independent directors to consider the
proposal.
The size of Mr. Chen's current stake in the company wasn't
immediately clear and a representative wasn't immediately available
to comment.
The proposed transaction is the latest in a flurry of executives
offering to take their U.S.-listed Chinese companies private. Last
week alone, social-networking site Renren Inc., data center
operator 21Vianet Group Inc., real estate service E-House Holdings
Ltd. and hotel chain Homeinns Hotel Group were among Chinese
companies to receive going-private offers.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
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