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[Update] Qihoo 360 Finalizes $9.3B Privatization Deal

By Cate Cadell

Qihoo 360 Technology Co., has finalized a privatization deal worth $9.3 billion USD, adding to the growing number of U.S.-listed Chinese companies that have exited the U.S. stock exchanges hoping for better valuations back home.

Over 30 Chinese companies have made plans or executed privatizations from the U.S. in 2015, despite a slowing economy back home. The Qihoo offer represents a 17% premium to the value of the share in June, when the buyout was originally proposed.

At that time Qihoo, which has been listed in the U.S. since 2011, received a the offer from a group of investors led by the company’s Chairman and CEO Zhou Hongyi. Mr. Zhou said Qihoo was undervalued, and that the privatization bid would be an opportunity to reassess the company’s worth.

Qihoo shares, listed on the New York Stock Exchange, were trading at $73.03 at the close of trade on Friday, almost $4.00 below the offer for $77 per American Depository Share.

The consortium leading the privatization bid includes Sequoia Capital China, Ping An Insurance, Citic Guoan, Golden Brick Road Capital, New China Capital, Taikang Life Insurance, Sunshine Insurance, Huatai Ruilian and Huasheng Capital. Qihoo expects to complete the deal in the first half of 2016.

Source:: [Update] Qihoo 360 Finalizes $9.3B Privatization Deal

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