Grindr Stockholders Zage And Lu Withdraw $18-Per-Share Take-Private Bid After Committee Ends Talks

• Zage and Lu, along with affiliated entities, collectively own more than 60% of Grindr’s outstanding shares. 
• They noted that the group of proposing shareholders secured significant expressions of interest to participate in acquisition financing.
• Zage and Lu added that they are aware that the company's senior management prefers that Grindr remain a public company. 

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. 

The Proposal

Zage and Lu, along with affiliated entities, collectively own more than 60% of Grindr’s outstanding shares. The two of them had acquired the LGBTQIA+ dating platform in June 2020 and also led the company’s public listing in November 2022.

In October, they offered to buy Grindr at $18 per share, representing a roughly 51% premium over its October 10 closing price.

However, on Monday, the Special Committee said the decision to halt the proposal had come due to “continued uncertainty as to the financing” and that the company did not receive satisfactory information on the details of the financing.

Zage And Lu’s View

The shareholders stated that they also informed the Special Committee of their willingness for the acquisition to be subject to the approval of a majority of the disinterested shareholders in this take-private transaction.

Zage and Lu added that they are aware that the company's senior management prefers that Grindr remain a public company. Zage intends to continue to purchase additional shares of the company in the market instead of a bid to privatize the company.

Retail sentiment on Grindr improved to ‘bullish’ from ‘neutral’ territory compared to a day ago, with message volumes at ‘normal’ levels, according to data from Stocktwits.

Grindr's shares have declined by over 29% this year. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: NUKK Stock Gains After New SPAC SC II Sets $10 IPO Price

Share

·

Add us on