Qihoo 360 Technology to Be Taken Private in $9.3 Billion Deal

23 Dec 2015 | Author: | No comments yet »

China’s Qihoo 360 Strikes New Buyout Deal.

A consortium of buyers led by Qihoo’s chairman Zhou Hongyi will pay $77 per American Depositary Share, a price tag that matches the earlier offer and represents a 17% premium to where shares were trading before the June bid. Qihoo 360 Technology Co., a developer of security software for mobile phones, agreed to be taken private for $9.3 billion including debt, six months after first getting a non-binding offer. The deal represents a premium of 16.6 percent to the closing price of the company’s American Depositary Shares on June 16, the day before it proposed going private. Qihoo, which provides products and services to protect computers and mobile devices from malware and malicious websites, was the biggest of a wave of buyout offers made earlier this year while Chinese stocks were soaring. Qihoo is part of a record number of Chinese companies on U.S. exchanges that have announced more than $30 billion of privatization deals this year, as investors and executives seek to shift listings to the mainland to unlock valuations.

The investors include the Citic Guoan Group, Golden Brick Silk Road Capital, Sequoia Capital China, Taikang Life Insurance, the Ping An Insurance Group, Sunshine Insurance, New China Capital, Huatai Ruilian, and Huasheng Capital. Those buybacks are resuming as regulators lift a freeze on initial public offerings and markets recover from a $5 trillion mainland stock market rout that commenced in June. The consortium plans to pay for the transaction with cash contributions from investors, a committed term loan of up to $3 billion and a bridge loan of $400 million.

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