Venture-Backed iDreamSky Receives Go-Private Proposal

Shenzhen-based mobile game publisher iDreamSky Technology Limited, backed by Legend Capital and Redpoint Ventures, has received a take-private proposal from its chairman and CEO with a valuation of approximately US$609 million, according to a company announcement.

Michael Xiangyu Chen plans to acquire all of the outstanding shares of the company not already owned by him for US$14 per American Depository Share (ADS), or a 3.8% discount to the company’s last closing price before the announcement on June 15.

Most go-private proposals offer a premium to the company’s current trading price. The unusual discount for iDreamsky is due to a 38% rally of the company’s stock price between June 9 to 12.

In August 2014, iDreamSky completed an initial public offering on the NASDAQ at US$15 per share, raising a total of US$115.5 million.

According to its IPO disclosure, Legend Holdings and Redpoint Ventures each would own a 15.8% and 12.8% stake after the float. Tencent Holdings Limited would own 16.9% post completion of the IPO.

Caishen.Co - Primary Data for China Secondary Investment and Stock Markets
Nina Xiang is the co-founder and managing editor overseeing editorial content and product development at CMN. Before founding CMN in 2011, Nina worked at BusinessWeek magazine in Beijing and Institutional Investor magazine in New York, writing about business and financial services. While in New York, she also served as part-time correspondent for Shanghai's financial television channel, China Business Network, as well as China Radio International, China's national English-language radio network.