Perfect World Co., a Beijing-based gaming company, is in a deal to go private by way of a buyout by its chairman.
Michael Yufeng Chi, the founder and chairman of Perfect World, will take it private through a company he incorporated in the Cayman Islands called Perfect Peony Holding Co., according to a statement Sunday.
His board-approved takeover, which will be financed by a $900 million loan facility, gives Perfect World a 28.2 percent premium over its Dec. 31 closing price, the last trading day before the proposal was announced. Perfect World’s American depository receipts gained 1.4 percent to $18.52 at the close in New York on April 24.
Perfect World, which has gained this year since Chi first proposed the deal in January, is going private amid shrinking profits. Its users are switching to lower-margin mobile games instead of more lucrative personal computer versions.
The merger is expected to close in the second half of this year. Class A shareholders will get $4.04 per share, while investors will get $20.20 for each ADR, equal to five Class B shares.