Gridsum Shares Up 8% on Buyout Proposal

The buyout offer at $3.80 per share implies a 40 percent upside from yesterday’s close.

Author: CapitalWatch Staff   

Gridsum Holding Inc. (Nasdaq: GSUM) announced Tuesday that it has received a buyout offer from a group led by its chairman and CEO, sending its shares 8 percent higher to $2.95 apiece.

The Beijing-based company, which provides cloud-based big-data analytics and artificial intelligence solutions, said its chief executive, Guosheng Qi, and its chief operating officer, Guofa Yu, joined by Beta Dynamic Ltd., offered to acquire shares of Gridsum at $3.80 each.

The offer implies a 40 percent upside from yesterday's close of $2.73 per ADS.

The consortium will finance the deal with a combination of debt and equity capital, according to the statement.

Gridsum added that no decisions have been made on the non-binding proposal.

Last month, the company reported a 56 percent year-over-year decline in revenue, at $8.7 million, and losses of $24 million, or 75 cents per share, a 150 percent jump from a year ago.