China’s Sogou Inc said on Monday shareholder Tencent Holdings has made a preliminary offer to get the remainder of the web search company it did not yet control, in a deal which valued the business at about $3.5 billion.
- Tencent Holdings makes a preliminary offer to acquire the remainder of the web search company it did not yet control
- The deal is said to value the Sogou Inc business at $3.5 billion
Tencent, which beneficially owns about 39.2% of the total issued and outstanding shares of Sogou, has offered $9 per share in cash, a premium of 56.5% to the last close of Sogou’s US-listed stock.
Sogou’s stocks rose to $8.39 in early morning trade.
Tencent plans to fund the transaction with cash available and has won the backing of Sohu Chief Executive Officer Charles Zhang, who possesses approximately 6.4% of Sogou, the Chinese tech giant said in a letter addressed to the target board.
A special committee of this board, composed exclusively of independent directors, may consider the proposal, Sogou stated.
The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our content partners at Thomson Reuters. Reporting by Ayanti Bera in Bengaluru. Editing by Shinjini Ganguli and Sriraj Kalluvila.
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