Shares of U.S. toymaker JAKKS Pacific Inc. rose as much as 24% on Sept. 6 after it disclosed that it received a nonbinding expression of interest to buy out the company for 85 cents to 90 cents per share.
The offer represents a 13.33% to 20% premium on JAKKS' closing price of 75 cents Sept. 5.
The company did not disclose the potential buyer, but Bloomberg News reported that the offer was made by New York-based Alleghany Corp., which owns JAKKS rival Jazwares LLC.
Sources reportedly told the news outlet that JAKKS has not made a decision yet and that Alleghany could choose not to proceed with its offer. The sources added that Jazwares has also attracted interest from other potential buyers, including rival toymaker Just Play.
JAKKS' announcement comes over a year after Hong Kong Meisheng Cultural Co. Ltd., the owner of animation studio Rising Anime, offered to buy additional shares in JAKKS for $2.95 apiece.
In the latest release, JAKKS said it continues to engage in talks with another party that previously made a nonbinding proposal to acquire the company for 80 cents per share. It noted that these discussions were in addition to its prior negotiations with Meisheng.
"All such recent discussions are in their early stages and no agreements or understandings have been reached with respect to such proposals, and the indicated prices described above may also change in a final offer, if made," the company said.
The newest takeover offer follows the conclusion of JAKKS' recapitalization transaction with Wells Fargo Bank NA, Oasis Investments II Master Fund Ltd. and an ad hoc group of holders of the company's 4.875% convertible senior notes due 2020.
"We remain committed to executing our business plan in the months and years ahead. At the same time, however, the company is exploring the alternative transactions described in this announcement," JAKKS CEO and co-founder Stephen Berman said in a statement.
JAKKS' stock closed up 6.67% to 80 cents following the company's announcement.
