Razer shares fall nearly 8% after group including co-founder offers to take company private

KEY POINTS

• A consortium that includes co-founder Tan Min-Liang as well as private equity firm CVC Capital Partners has made an offer to take Hong Kong-listed gaming hardware company Razer private.
• It has offered to pay up to 10.79 billion Hong Kong dollars ($1.38 billion) to buy all remaining shares.
• The consortium plans to buy those shares at 2.82 Hong Kong dollars a piece, representing a 5.6% upside based on Razer's closing price Wednesday.

Tan Min Liang, the co-founder, CEO and executive director of Razer, at a press conference on the proposed listing of Razer at JW Marriott Hotel Hong Kong in Admiralty.

Dickson Lee | South China Morning Post | Getty Images

Razer shares tumbled around 7.87% Thursday after a consortium that includes co-founder Tan Min-Liang made an offer to take the Hong Kong-listed gaming hardware company private.

The consortium, which also includes private equity firm CVC Capital Partners, has offered to pay up to 10.79 billion Hong Kong dollars ($1.38 billion) to buy all remaining shares, according to a regulatory filing.

As part of the deal, the group would buy those shares at 2.82 Hong Kong dollars a piece, representing a 5.6% upside based on Razer's closing price Wednesday.

The company said the offer price is final and will not be increased.

Razer, which makes laptops, PC peripherals and other products for gamers, went public in 2017 with an initial public offering price of 3.88 Hong Kong dollars a share.

For a brief period, the stock traded above 4 Hong Kong dollars but failed to hold onto that level.

Relatively low institutional investor participation and prolonged low trading liquidity has had a negative impact on the share price, Razer said in its regulatory filing.

Founded in 2005, Razer is headquartered in Irvine, California, but also has regional headquarters in Shanghai, Singapore and Hamburg, Germany.

Credit Suisse is the financial advisor on the proposed deal.