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Browser maker’s board unanimously recommends cash bid, reports Q4 revenue growth.
Mobile browser maker Opera on Wednesday accepted a US$1.2 billion takeover bid from a consortium of Chinese investors.
The group is led by equity firm Golden Brick Silk Road Equity Investment Fund and includes Chinese security software maker Qihoo 360 and value-added services provider Beijing Kunlun Tech, among others.
"We believe that the consortium, with its breadth of expertise and strong market position in emerging markets, will be a strong owner of Opera," said Opera CEO Lars Boilesen, in a statement. "The consortium’s ownership will strengthen Opera’s position to serve our users and partners with even greater innovation, and to accelerate our plans of expansion and growth."
The offer represents a 56% premium to Opera’s 30-day average share price, and a 46% premium to its 90-day average share price to 4 February.
Stakeholders representing approximately a third of Opera’s share capital have already agreed to the offer, Opera said, and members of its board and executive team who own shares in the company have agreed to tender their shares.
Six months ago, Opera revealed that potential suitors were circling and so it launched a review to evaluate strategic alternatives for the company. Opera took the decision the same day it cut its full-year earnings and revenue outlook.
"Opera is a well-recognised mobile Internet company with great brand recognition and global impact. Under its excellent management team, Opera has made remarkable achievements in recent years in the fields of mobile browser and mobile advertising," said Kunlun CEO Yahui Zhou, in a statement. "By combining Opera with Kunlun, Qihoo, and Golden Brick, the consortium will join forces and solidify our leadership position in the international Internet space."
For the takeover to be successful, shareholders representing more than 90% of Opera’s issued and outstanding share capital must accept the consortium’s offer.
The offer will be made to shareholders in March and will be valid for three weeks. If more than a third of Opera’s shares are tendered but less than 90%, the consortium will launch a mandatory offer for the remaining shares.
If Opera keeps up its end of the deal but the consortium decides to withdraw its offer, Opera will receive $40 million.
The announcement was made the same day that Opera published its fourth quarter results.
In the three months to 31 December, the company generated revenue of $193.5 million, up from $154.4 million a year earlier. EBITDA fell 5% year-on-year to $32.8 million, while net loss narrowed to $6.6 million from $58.3 million in Q4 2014.
