Grindr Stockholders Zage And Lu Withdraw $18-Per-Share Take-Private Bid After Committee Ends Talks
Synopsis
Zage and Lu said that the Special Committee indicated that this determination was made due to uncertainty around the financing for the proposal.
Grindr’s (GRND) major shareholders, Ray Zage and James Lu, said on Wednesday they were withdrawing the $ 18-per-share offer they made in October to take the company private, following the Special Committee's decision to terminate the engagement on the proposal.
Zage and Lu said that the Special Committee indicated that this determination was made due to uncertainty around the financing for the proposal. “Over the past several weeks, there was regular engagement and negotiation around the signing of a confidentiality agreement to allow our team of financial advisors to conduct confirmatory due diligence in order to finalize a committed debt facility for the going private transaction,” they noted.
Shares of the company traded over 2% higher on Wednesday morning.
Zage and Lu also added that the group of proposing shareholders secured significant expressions of interest to participate in acquisition financing, including multiple highly confident letters as well as contributions in the form of senior debt, hybrid securities and equity.
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