JAKKS Pacific receives interest from Meisheng to acquire 51% stake
JAKKS Pacific (JAKK) announced today that the company had received a letter dated January 25, 2018 from Hong Kong Meisheng Cultural Company, a wholly owned subsidiary of Meisheng Cultural and Creative Corp., containing a non-binding proposal expressing Meisheng’s interest in acquiring additional shares of JAKKS common stock for $2.95 per share.
Upon completion of the transaction, Meisheng’s shareholdings and voting rights would increase to 51%.
The Proposal states that it is subject to due diligence, and that Meisheng intends to fund the transaction through a combination of existing cash on hand and/or other financing sources to the extent required for the restructuring or refinancing of JAKKS’ outstanding senior convertible senior notes.
The Expression of Interest also states that the transaction is subject to approval by Meisheng’s Board of Directors, shareholders and Chinese regulatory authorities.
Hong Kong Meisheng currently owns 5,239,538 shares of JAKKS common stock constituting 18% of JAKKS issued and outstanding shares of common stock.
The board of JAKKS Pacific has authorized a Special Committee comprised solely of independent directors to evaluate the Expression of Interest.
The Special Committee intends to engage independent legal counsel and an independent financial advisor to assist in its evaluation of the Expression of Interest.
JAKKS Pacific, Inc. develops, produces, and markets consumer products worldwide. It operates through three segments: U.S. and Canada, International, and Halloween.
JAKK closed at $2.60.
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