NASDAQ-listed Chinese advertising agency Charm Communications Inc. says it has received a preliminary non-binding proposal from an investor consortium including the company’s founder and chief executive He Dang to take the company private.
Hong Kong-based Chinese private equity firm China Media Capital (CMC) is supporting the management buyout of the Beijing-based Charm Communications.
The investor consortium is proposing to pay US$4.70 in cash per American Depositary Share (ADS), or US$2.35 in cash per ordinary share.
The price represents a 17% premium to the company’s closing before the announcement.
The deal values the company at US$183 million.
Charm Communications’ board has not made any decisions on a response to the proposal.