JAKKS Pacific, Inc. (NASDAQ: JAKK) is having an incredibly strong day in the market today, and for good reason. In a press release issued early this morning, the company announced that there is an interest to purchase a 51% majority stake in the company. Of course, this led to excitement among investors, sending the stock screaming for the top. Today, we’ll talk about the news, what we’re seeing from JAKK, and what we’ll be watching for ahead.
JAKK Gains On Potential Sale Of 51% Stake
As mentioned above, JAKKS Pacific is having an incredibly strong day in the market today after announcing that there is interest to purchase 51% of the company. In a press release issued early this morning, the company announced that it has received a letter from Hong Kong Meisheng Cultural Company Limited.
According to the release, Hong Kong Meisheng is interested in acquiring additional shares of JAKKS stock for a price of $2.95 per share. If the transaction is complete, Meisheng would have shareholder voting rights that would give it the majority stake in the company at 51%. In the release, JAKK announced that Meisheng intends to fund the transaction with cash on hand and/or other financing sources.
However, it’s important to keep in mind that the deal is in no way set in stone. In the letter, Meisheng said that the transaction is subject to approval by its Board of Directors, shareholders, and Chinese regulatory authorities. Not to mention, JAKK may be mulling the deal over, but no decision has been made just yet.
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