Acorn International, Inc. (NYSE: ATV) has disclosed Monday that it has signed a definitive agreement and Plan of Merger with First Ostia Port Ltd. (controlling shareholder) and its wholly-owned subsidiary Second Actium Coin Ltd., a Cayman Islands exempted company (Merger Sub) for $21 per share.
The company disclosed that the per-share merger payment represents 44.1% over the closing price of $14.57 ADS on August 17 of the company. The closing price has been set for a day before when the company got a non-binding going-private proposal from the controlling shareholder.
The merger payment also includes the revised ‘going-private’ proposal offered by the controlling shareholder on August 18 which represents an increase of approximately 38.0% over the US$15.22 per ADS. It also includes the premium of approximately 39.4% over the closing price of US$15.07 per ADS of the company on October 9, 2020, the last trading day before the issuance of this press release.
Acorn International, Inc. (NYSE: ATV) shares were trading up 34.39% at $20.26 at the time of writing on Monday. Acorn International, Inc. (ATV) share price went from a low point around $7.96 to briefly over $19.59 in the past 52 weeks. It has traded up 154.52% and 3.42% from its 52-weeks low and high. ATV market cap has remained high, hitting $37.99 Million at the time of writing
Wholly-owned subsidiary Second Actium Coin Ltd. of a controlling shareholder will merge with and into the company thereby becoming a wholly-owned subsidiary of the Controlling Shareholder (the Merger). The Company will be bought in an all-cash transaction by the Controlling Shareholder.
As per the share merger consideration, each ordinary share, par value $0.01 per share, of the company shall be canceled in exchange for the right to receive $1.05 in cash per share without interest. The agreement will be financed by a third party lender and is expected to execute by the end of this year.
