JOYY’s top two shareholders, its chairman David Li and founder Lei Jun, plan to take the Nasdaq-listed company private in a deal that could value it at up to US$8 billion, three people with knowledge of the matter said.They are teaming up for the deal as they believe the Chinese social media company is undervalued in the US market, the people added. JOYY had an average market value of US$3.9 billion over the past month, while its net asset value totalled US$5.6 billion as of June 30, based on its quarterly results.Li and Lei are looking to offer US$75 to US$100 per share to take the cash-rich JOYY private, two of the people said, a premium of between 50 per cent and 100 per cent to the share’s average price over the past month.The sources all spoke on condition of anonymity as the information was private.
Li and Lei did not immediately respond to requests for comment via JOYY and Xiaomi, respectively. Neither did JOYY,Li and Lei owned 23.2 per cent and 7.8 per cent of JOYY, respectively, the company’s 2020 annual report shows. Li had 76 per cent voting power.If completed, the deal will add to a growing number of New York-listed Chinese firms that have already opted out of US bourses by going private or These moves come amid heightened scrutiny and stricter audit requirements for US-listed Chinese companies from American regulators amid political tensions between the countries.Reuters reported last month that Weibo Chairman Charles Chao and a state investor were in talks to take Weibo private in a deal that could value the Nasdaq-listed Chinese equivalent of Twitter at US$20 billion-plus.
The SAMR did not immediately respond to a Reuters’ request for comment.JOYY shares have plunged 53 per cent in the past six months while the Nasdaq Golden Dragon China Index, which tracks Chinese firms listed on the exchange, has dropped 41 per cent. for more news always follow us on our social media handles