Razer shares fall nearly 8% after a group including co-founder offers to take the company private

December 3, 2021: -Razer shares tumbled around 7.87% Thursday after a consortium that includes co-founder Tan Min-Liang offered to take the Hong Kong-listed gaming hardware company private.

According to a regulatory filing, the consortium, which also includes private equity firm CVC Capital Partners, has offered to pay up to 10.79 billion Hong Kong dollars ($1.38 billion) to buy all remaining shares.

The group would buy those shares at 2.82 Hong Kong dollars apiece as part of the deal, representing a 5.6% upside based on Razer’s closing price Wednesday.

The company said the offer price is final and will not be increased.

Razer, which makes laptops, PC peripherals, and other products for gamers, went public in 2017 with an initial public offering price of 3.88 Hong Kong dollars a share.

The stock traded above 4 Hong Kong dollars for a brief period but failed to hold onto that level.

Relatively low institutional investor participation and prolonged low trading liquidity have harmed the share price, Razer said in its regulatory filing.

Founded in 2005, Razer is headquartered in Irvine, California, and has regional headquarters in Shanghai, Singapore, and Hamburg, Germany.

Credit Suisse is the financial advisor on the proposed deal.