Opera Software ASA agreed to sell itself to a group of Chinese technology companies for about 10.5 billion kroner ($1.2 billion) in a deal that will give the Norwegian maker of web browsers additional financing and access to new customers in China.
The group will begin a 71-kroner-a-share cash tender offer for Opera, the Oslo-based company said in a statement Wednesday. That's 46 per cent above the last closing price, on February 5. Investors owning about a third of Opera and members of the executive team and the board holding shares have agreed to the offer, and the board is recommending it to stockholders, Opera said.
The buyers include private-equity firm Golden Brick Capital Management Ltd, Chinese game maker Beijing Kunlun Tech Co, Internet security provider Qihoo 360 Technology Co and Yonglian Investment Co, according to the statement. The sale will give Opera access to the Web-user base of Kunlun and Qihoo in China as well as additional financing, the company said.
Also Read
"If you look at the industrial partners, it's an ecosystem idea," said Chairman Sverre Munck said at a news conference in Oslo. "Ecosystem is a key word because we compete with the big ones, Facebook, Google, Apple. To compete alone against an ecosystem is rather demanding. Now we become part of an ecosystem that suits us well."
Opera started a review of its options in August after receiving strategic interest from a number of parties.
Fredrik Steinslien, an analyst at Pareto Securities AS, said the offer appears attractive given his 63 kroner share price target and Opera's 2016 earnings guidance that was "well below" its prediction.
Opera shares, which fell 47 per cent last year, climbed last week on speculation a deal was planned.
The stock jumped 41 per cent to 68.85 kroner at 9:10 am in Oslo, giving the company a market value of 10 billion kroner. Trading in the stock was halted on February 5 because of media speculation about a bid.
