Is Telenav (NASDAQ: TNAV) Still A Safe Bet?

Telenav, Inc. (NASDAQ: TNAV) has announced that it has signed a merger agreement with V99, Inc. As per the agreement, V99, Inc. a Delaware corporation led by HP Jin, Co-Founder, President, and CEO of Telenav will buy Telenav for $241 million. The shareholders of Telenav will get $4.80 per share in the all-cash transactions. This will represent approximately 33.3 percent over Telenav’s closing stock price on October 1, 2020.

HP Jin, director of Telenav, Samuel T. Chen,  and a certain entity affiliated with Mr. Chen is anticipated to give debt financing in connection with the proposed transaction. This merger deal will start a new period of growth for Telenav. The Board of Directors of Telenav has approved the merger and merger agreement with V99 Inc.  A Special Committe of independant financial and legal advisors will discuss the terms of merger agreement.

This merger agreement also offer the 30-day ‘go-shop’ period which allow the Special Committee and its advisor to request acquisiton proposals from third parties. The Special Committtee will also be able to end the merger agreement and to chose a superior proposal as per the terms and conditions of merger agreement.

Up till now there are no chances that the company will receive other superior proposal. But it has no intention to share the information regarding the proposal request process unless and until it discover such disclosure is appropriate or otherwise required.

Telenav, Inc. (NASDAQ: TNAV) shares were trading down 19.52% at $4.75 at the time of writing on Tuesday. Telenav, Inc. share price went from a low point around $3.45 to briefly over $6.50 in past 52 weeks. It has moved up 37.54% from its 52-weeks low and moved down -27.00% from its 52-weeks high.  TNAV market cap has remained high, hitting $183.10 Million at the time of writing.

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