The woes continue for toymaker Jakks Pacific, as it is said to have received a takeover offer from the owner of Jazwares amid a steep slide on its share prices this week.
Reported by the LA Times and according to people close to the matter, Jazwares’ parent company, Alleghany Corp, made an offer to buy Jakks Pacific for 85 cents a share, an offer valued at around $27.7 million.
The source – who chose to remain anonymous due to the clandestine nature of the subject – suggested that no decision has been made, and Alleghany could opt to not proceed with its bid altogether.
Jakks Pacific rose as high as 95 cents a share on Thursday, before closing at 75 cents, down 1.3 per cent and giving the company a market value of around $24.9 million. It’s reported that the company has had about $161 million in long term debt and has seen its shares fall about 69 per cent in the past year.
Both Jakks Pacific and Alleghany have declined to comment on the topic.
Earlier this year, Meisheng Cultural and Creative Corp of China offered to buy 51 per cent of Jakks’ shares. In June, the toy company said it was still exploring alternative transactions.