Chinese online game developer and operator Changyou recently announced that the board of the company has received an initial non-binding privatization proposal from its chairman Charles Zhang.
According to the proposal, Zhang, who is the founder of Sohu.com, intends to acquire Changyou's all class A and class B common stock in circulation, including those class A common stock represented by American depositary receipts.
The acquisition offer is USD21.05 per class A or class B common share, or USD42.10 per American depositary receipt. The price represents a 50% premium compared with the company's average ADR closing price over the past 90 trading days and it represents a 9% premium compared with its ADR closing price on May 19, 2017.
Changyou's board of directors plans to establish a special committee formed by independent directors. The board predicted that this special committee would hire independent consultants, including financial and legal consultants, to assist their consideration procedure.