NASDAQ-listed Chinese advertising agency Charm Communications Inc. says it has entered into a definitive agreement with an investor consortium including the company’s founder and chief executive He Dang to take the company private.
The company’s board has also approved the deal.
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.
The transaction is expected to close before the end of the third quarter 2014, and is still subject to a shareholder vote.
Last October, Charm Communications first announced that it has received the take-private deal proposal.