Jumei Shares Soar 9% on Buyout Offer
The chairman and CEO of Jumei has proposed to buy all outstanding shares in the online retailer at a price 15% above Friday's close.
The stock in Jumei International Holding Ltd. (NYSE: JMEI) soared 9% on Monday thanks to a going-private bid from the head of the company, Leo Ou Chen.
The chairman, chief executive and active chief financial officer of Jumei has proposed to buy all its shares at $20 per American depositary share. That represents an upside of 15% from Friday's close of $17.43 per ADS.
In response to the announcement, the stock in the Chinese online retailer jumped to $19 per share on Monday.
The company, based in Beijing, sells branded beauty, baby, children and maternity products, light luxury products and health supplements on its platform. Jumei also diversified from e-commerce into fashion and lifestyle businesses, including Jiedian, a mobile device power bank operating company, and TV drama series production.
Chen said he intends to finance the deal with a combination of debt and equity capital.
In its statement on Monday, Jumei said it will review the chairman's proposal.