New York Stock Exchange-listed Qihoo 360 Technology Co. Ltd. has received a preliminary non-binding proposal from its chairman and CEO, as well as a number of investors, to take the company private, according to a company announcement.
CITIC Securities Co. Ltd., Golden Brick Capital Private Equity Fund I L.P., China Renaissance Holdings Limited, and Sequoia Capital China I, L.P. are backing the privatization proposal, which values the Beijing-based Internet firm at approximately US$9.9 billion.
The investor consortium is offering US$77 per American Depository Share (ADS) in cash, a premium of 16.6% to the company’s last closing price before the announcement on June 17.
The deal is to be finance with a combination of debt and equity capital, says the statement.
Qihoo 360 raised US$175 million via an initial public offering in 2011, selling 12 million shares at US$14.5 per share.