Deals
CVC, iDreamSky Talks for Hong Kong’s Leyou Buyout Have Stalled
- Virus outbreak has affected valuations, due diligence
- iDreamSky is turning to Chinese lenders to finance this deal
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Talks between iDreamSky Technology Holdings Ltd. and CVC Capital Partners to jointly acquire a Hong Kong-listed gaming company have stalled as the Covid-19 pandemic roils financial markets, according to people familiar with the matter.
Although the suitors had lowered their offer for Leyou Technologies Holdings Ltd. in recent weeks, the coronavirus outbreak has affected negotiations between iDreamSky and CVC over valuations as well as due diligence, the people said. The new proposal valued Leyou at $1.23 billion, down from an initial $1.4 billion, said the people, who asked not to be identified as the discussions are private.