Camelot nears privatization by raising its buyout offer
Software outsourcing company Camelot Information Systems, in a bid to finalize privatization of the company, had raised its buyout offer led by its management. A report from the South China Morning Post (SCMP) said that the new offer was a desperate move to consolidate with the increasingly saturated software outsourcing market in China.
Camelot's new buyout offer is worth USD98.2 million by its management composed of President Heidi Chou, Chairman and CEO Simon Yiming Ma, Executive Vice President Yuhui Wang and their associates. The management was prepared to take the company private at USD2.05 per American depositary share. This was 37% more than the software outsourcing company's share price on market's close last March 11, incidentally the last trading day before Ma's group proposed taking the company private.
The SCMP report suspected that the raised offer was to counter the interest of Camelot's rivals that may include Beyondsoft. Beyondsoft has yet to publicly confirm their interest in buying Camelot out.
Camelot's board of directors had tasked a special committee of independent directors back in March to consider the raised offer. Should this be approved, the deal would be finalized in early 2014.